EconomyIPOs
Zetwerk's IPO is a quarter subscribed after day one while Tonbo's is bid four times
Two share sales that opened on Thursday got very different receptions. Both enter their second day on Friday and close on 19 October.
Key points
- Zetwerk's ₹5,012 crore issue was 0.23 times subscribed at the end of its first day.
- Defence imaging firm Tonbo's ₹852 crore issue drew bids for 4 times the shares on offer.
- Both issues close on 19 October and are due to list on 23 October.
The two biggest share sales that opened on Thursday had sharply different first days. Zetwerk’s ₹5,012 crore issue was just under a quarter subscribed by the close, while Tonbo Imaging’s smaller ₹852 crore offer was bid four times over.
Both issues are open again on Friday, their second day.
Zetwerk: institutions hold back
By 5:03 pm on Thursday, Zetwerk had received bids for 4.18 crore shares against 18.29 crore on offer, or 0.23 times, from 65,869 applications. Qualified institutional buyers had subscribed 0.30 times their portion, retail investors 0.23 times and non-institutional investors 0.09 times. The employee quota was 0.26 times subscribed.
The Bengaluru manufacturing platform, which has raised ₹2,251.23 crore from anchor investors, is selling shares at ₹143 to ₹151 each. Brokers have been split on the issue, with some recommending it for the long term and others pointing to its losses.
Tonbo: strong demand for defence tech
Tonbo, a maker of defence electro-optics, saw demand across every category. Non-institutional investors bid 5.95 times their quota, qualified institutional buyers 3.92 times and retail investors 3.20 times. In all, it drew bids for 3.41 crore shares against 85.26 lakh on offer, from 5.40 lakh applications.
The issue is entirely an offer for sale by existing shareholders, at ₹665 to ₹700 a share.
Other issues
Bonfiglioli Transmissions’ ₹2,533.81 crore IPO was 0.48 times subscribed on its first day. Fusion CX’s issue, 1.10 times subscribed after two days, closes on Friday.
Zetwerk and Tonbo both close on 19 October, with allotment on 21 October and listing on the BSE and NSE on 23 October.