11 May 07 Insecticides India Limited IPO Subscription Details : IPO Issue Oversubscribed
Insecticides India IPO closed for subscription today. The Insecticides India IPO finally got oversubscribed in the fag end of today’s IPO market close. The subscription / oversubscription rates are pathetic, to say the least. I expected Insecticides India IPO to perform better than Binani Cement IPO, but it has fared very badly. The retail individual category in the Insecticides India IPO was subscribed 4.49 times (oversubscribed 3.49 times). The High networth individual category was subscribed 1.62 times (oversubscribed 0.62 times). The institutional investor category got a subscription of only 0.32 times (undersubscribed by 0.68 times). Overall, the Insecticides India IPO was subscribed little less than 2 times (over-subscribed 0.97 times)
What really suprises me is the fact that so many retail investors have fallen prey to the Insecticides India IPO. When the institutional investor, who has access to much more information than the retail investor, has by and large desserted this IPO, on what basis did retail investors flock in and invest? What made the Insecticides India IPO so attractive to retail investors alone? I can think of only 2 possible reasons
1) Retail Investors read some media/brokerage/investment bank report (probably manipulated and skewed) on the Insecticides India IPO which screamed a “BUY”
2) The retail investor probably got too optimistic after looking at the MIC Electronics IPO subscription.
As I’ve said time and again, subscribe to an IPO only if it has good institutional support. Insecticides India IPO didn’t have good institutional support and hence is very likely to get a bad listing (unless some miracle takes place on the day of listing). Good luck to those who have invested in the Insecticides India IPO. The listing date of Insecticides India is likely to be somewhere at the end of May. Insecticides India will list both on the NSE and the BSE. Investors who have invested in the Insecticides India IPO can expect the IPO refund in the last week of May through ECS. Allotment is likely to be made a few days before the listing date. The allotment status of Insecticides India IPO and the detials for checking the allotment status online will be posted here as soon as they are available.
Listing Date : Insecticides India Limited will list on the stock market on Wednesday 30 May 2007. MIC Electronics will also list on the same day.
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