Raigad-based logistics company Navkar Corporation Ltd's public float sail through comfortably led by institutional investor interest on the third and final day with bids worth 2.8 times the shares on offer for the initial public offer (IPO) which closed on Wednesday.
As per the data available with the stock exchanges, while qualified institutional buyers’ (QIBs) portion saw 5.47 times oversubscription, HNIs & corporates portion was not fully covered with 89 per cent subscription and shares reserved for retail investors was oversubscribed 59 per cent.
The public issue had a real slow start with just around 14 per cent of the issue picked on Monday. This was expected given the mayhem in the secondary market with the benchmark indices losing almost 6 per cent in a day. It was subscribed 36 per cent at the end of day 2 (August 25).
Previously, Navkar Corporation, which provides container freight station services and trading activities, raised Rs 173 crore from a total of 15 anchor investors by allocating 11.6 million equity shares.
Navkar Corporation was looking to raise Rs 600 crore, comprising fresh issue of equity shares aggregating to Rs 510 crore ($82 million) and an offer for sale of Rs 90 crore ($14 million) by the selling shareholder namely Sidhhartha Corporation Pvt Ltd, a member of the promoter group, through the IPO.
Founded in 1983, Navkar Corporation is promoted by Shantilal Jayavantraj Mehta and Nemichand Jayavantraj Mehta. The company’s services include packing, labelling/bar-coding, palletising, fumigation and other related activities at warehouses.
Axis Capital, Edelweiss and SBI Capital are managing the issue.
