EconomyIPOs
Zetwerk's IPO reaches 31% after two days as Tonbo's is bid nearly eight times
Big investors are holding back from the ₹5,012 crore Zetwerk offer, while the much smaller Tonbo Imaging sale is drawing heavy demand from wealthy individuals. Both close on Monday.
Key points
- Zetwerk's share sale was subscribed 0.31 times by the end of the second day.
- Tonbo Imaging's offer was subscribed 7.78 times, up from 4.01 times after day one.
- Both issues close on 19 October and are due to list on 23 October.
The two share sales that opened on Thursday continued to head in opposite directions on their second day. Zetwerk’s ₹5,012.33 crore initial public offering had been subscribed only 0.31 times by Friday evening, while bids for Tonbo Imaging’s ₹852.18 crore issue were close to eight times the shares on offer.
Zetwerk waits for big buyers
By 5 pm on Friday, Zetwerk had received bids for 5.76 crore shares against 18.29 crore on offer, up from 0.23 times at the end of day one. Qualified institutional buyers, the mutual funds, insurers and foreign funds who usually decide the fate of large issues, had bid for 0.37 times their portion. Retail investors had also taken up 0.37 times theirs, and non-institutional investors just 0.17 times.
Large institutional bids often arrive on the last day, and Zetwerk’s issue stays open until Monday. The contract manufacturer is selling shares at ₹143 to ₹151 each. The offer combines ₹2,830 crore of new shares with an offer for sale of about ₹2,182 crore by existing investors.
Tonbo draws a crowd
Tonbo Imaging, which makes electro-optic and thermal imaging systems for defence, saw demand climb from 4.01 times on Thursday to 7.78 times. Non-institutional investors bid 14.35 times their portion, with those putting in under ₹10 lakh bidding more than 20 times. Retail investors subscribed 7.14 times and institutions 3.95 times.
The entire Tonbo issue is an offer for sale by existing shareholders, priced at ₹665 to ₹700 a share, so the company itself will raise no new money.
Both issues close on 19 October. Tonbo’s shares are due to be allotted on 21 October, and both companies are expected to list on the BSE and NSE on 23 October.