EconomyIPOs
Zetwerk's ₹5,012 crore IPO crosses the line on its last day as institutions step in
The contract manufacturer's offer, which had drawn bids for less than a third of its shares by Friday, was subscribed 1.25 times by Monday afternoon.
Key points
- Zetwerk's IPO was subscribed 1.25 times by 2:20 pm on the final day.
- Qualified institutional buyers led the late demand, after holding back for two days.
- Zetwerk and Tonbo Imaging are due to list on 23 October.
Zetwerk’s ₹5,012.33 crore initial public offering was fully subscribed on Monday, its last day of bidding, as large institutions finally put in the orders the issue had been waiting for.
By 2:20 pm the offer had drawn bids for 1.25 times the shares on sale, with qualified institutional buyers leading the demand. That was a sharp turnaround from Friday evening, when the issue had been subscribed only 0.31 times and institutions had bid for just over a third of their portion.
Large investors such as mutual funds, insurers and foreign funds often bid on the final day of big issues, and their portion decides whether an offer of this size goes through. Bids were still coming in through the afternoon, with the issue due to close later on Monday.
Zetwerk, a contract manufacturer, is selling shares at ₹143 to ₹151 each. The offer is made up of ₹2,830 crore of new shares, which bring money into the company, and an offer for sale of about ₹2,182 crore by existing investors.
Tonbo Imaging, the defence electronics maker whose ₹852.18 crore offer opened on the same day as Zetwerk’s, also closed on Monday. Its sale had already been bid close to eight times by Friday, with heavy demand from wealthy individuals.
Shares in Tonbo are due to be allotted on 21 October, and both companies are expected to list on the BSE and NSE on 23 October. The next big test for the primary market comes on Wednesday, when the ₹30,200 crore Jio Platforms offer opens.