20 Apr 07 Fortis Healthcare Limited IPO subscription details – IPO Issue Oversubscribed
Fortis Healthcare IPO has been over-subscribed. The final subscription figures shows that Fortis HealthcareIPO issue has recieved a subscription of 2.78 times its total issue size. There has been lukewarm response from all sections of investors for the Fortis Healthcare IPO considering the fact that the markets have touched a 2 month high today and the IPO market conditions being extremely good, with the ICRA issue subscribing 77 times and getting an excellent listing. I personally expected the issue to do much better. Anyway, as always the stock markets are unpredictable.
Category wise Fortis Healthcare IPO Subscription details
Qualified Institutional Buyers (QIBs) - 2.72 timesÂÂ
Non Institutional Investors – 1.74 times
Retail Individual Investors (RIIs) – 3.25 times
As one can see the Institutional interest in the Fortis Healthcare is very low. As a rule of thumb, an IPO will have a bad listing if the QIB subscription is less than Retail subscription. This is because retail investors tend to sell off the shares alloted to them as soon as the stock gets listed and hene there would be huge selling pressure on the day of listing.
This has happened in the case of Fortis Healthcare IPO. I spoke to a few friends who had applied for the Fortis Healthcare IPO hoping that it would give returns just like ICRA did. These people are now looking at giving stop payments after looking at the low Institutional interest in the IPO.
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when will the FORTIS IPO get listed? what may be the speculated listing price
Fortis Healthcare IPO is likely to list in the 2nd week of may. I’m afraid it may list below the IPO issue price