08 May 07 MIC Electronics Limited IPO subscription : IPO Issue Oversubscribed
The MIC Electronics Limited IPO, as expected, has done extremely well. The MIC Electronics has been subscribed over 50 times (overall) the IPO issue size. Frankly, though the valuations were extremely attractive, I did not expect MIC Electronics IPO to do so well. The retail quota has been oversubscribed by over 30 times (subscription 31.11 times). Yesterday, it was subscribed only 1.23 times. The High net worth individual quota has been subscribed by a whooping 106 times (oversubscribed 105 times). The Institutional investor category has been subscribed by 47.5 times the issue size (oversubscription 46.5 times).ÂÂ
No matter what quantity one has applied for, the allotment will be done based only on lottery system. Investors who applied for the maximum shares (630) under the retail quota will get allotment based on a probability of around 1:2.2 , which means out of every 2.2 applications received for 630 shares of MIC Electronics, at cutoff, 1 application will get an allotment of 45 shares. I don’t like lottery based allotment. I prefer firm allotment. Somehow, I never get shares alloted in the case of a lottery based allotment and hence i usually give stop payment when an IPO is oversubscribed heavily. But, since I never expected the MIC Electronics Limited IPO to get such a high oversubscription, I didnt apply through cheque. Lazy me just sat in my desk and applied online through sharekhan. Hence giving stop payment is not possible. I guess, I just need to keep my fingers crossed praying for an allotment of 45 shares of MIC Electronics Limited. ÂÂ
MIC Electronics will list both on the NSE and BSE. The listing date is expected to be sometime in the last week of May. The allotment details of MIC Electronics IPO would be out in the next 12-13 days. Refund can be expected in 20 days. Kindly keep checking this space for updates on allotment status, refund, listing price and listing date of the MIC Electronics IPO. One thing is for sure, those lucky enough to get allotment can expect excellent listing gains.
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