14 Jun 07 DLF IPO gets poor response from Retail Investors : Avoid Part Payment Option
DLF IPO has received subdued interest from the retail investor community. As of 2 PM today (closing date), the DLF IPO is undersubscribed in the retail category. However, overall the DLF IPO is oversubscribed. The DLF IPO has been subscribed by about 3 times its IPO issue size (oversubscribed 2 times). Retail Investors are adviced not to use the part payment option. If part payment option is used investors would get partly paid up shares and won’t be able to sell the alloted shares on the listing date. Part payment option can be safely used if the retail category is subscribed by atleast 3.5 to 4 times. At the moment DLF IPO is undersubscribed and I doubt if it will be oversubscribed by more than 3 times by end of day today.
4 PM Update : As of 4 PM DLF IPO has been subscribed by 3.12 times (oversubscribed 2.12 times). Retail Category still seems to be undersubscribed. Retail subscription is approximately 0.80% as of now which means it is undersubscribed by 0.20%
6 PM Update : As of 6 PM DLF IPO has been subscribed by 3.45 times (oversubscribed 2.45 times). Retail Category seems to be fully subscribed. Retail investors are likely to get full allotment. Hence profits or losses will both be huge depending on the DLF listing price.
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Reader's Comments
My wife and me have both invested in the DLF IPO at cut off price – with the issue undersubscribed in the retail segment, does this mean there is a chance that the issue price will come down to the lower end of the band?