Navkar Corporation’s IPO continued to languish on the second day of bidding and was subscribed only 36% amidst immense volatility in secondary market. Investors bid for 1.02 crore shares on the second day, data available from NSE and BSE showed. The Raigad-based container freight station (CFS) operator is offering a total of 2.85 crore shares in the net offer, excluding the anchor investor portion.
Last Friday, Navkar Corporation raised INR180 crore by placing 1.16 crore shares with a clutch of anchor investors. The company attracted some prominent names including Abudhabi Investment Authority, Morgan Stanley Investment Mauritius, and Nomura as anchor investors. In total, Navkar Corporation plans to mobilize INR600 crore through the IPO which is priced between INR147 per share and INR155 per share.
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Retail investors got active on the second day and placed bid for 85.98 lakh shares, resulting in 60.2% subscription in the category. Subscription in the Qualified Institutional Buyers (QIBs) quota increased to 18.8% as investors placed bids for 15.33 lakh shares.
Non institutional investors (NIIs) continued to stay away from the IPO on the penultimate day with bids placed for just 1.49 lakh shares. NII typically flock on the last day of IPOs but 2.4% subscription is abysmally low.
| Navkar Corporation IPO Bidding (as on 25 August 2015) | ||||
| Sr.No. | Category | No. of shares offered | No. of shares bid for | % subscription |
| 1 | Qualified Institutional Buyers (QIBs) | 8163266 | 1533680 | 18.8 |
| 2 | Non Institutional Investors | 6122449 | 149815 | 2.4 |
| 3 | Retail Individual Investors (RIIs) | 14285714 | 8598640 | 60.2 |
| Total | 28571429 | 10282135 | 36.0 | |
Navkar Corporation plans to use IPO proceeds towards capacity enhancement of the Somathane container freight station (CFS), development of the non-notified areas of CFSs and establishment of a logistics park at Valsad in Gujarat. Out of the INR510 crore through the sale of new shares, INR314.56 crore will go towards the new logistics park at Valsad, near Vapi. Nearly INR144.53 crore will be used to expand capacity of Somathane CFS facility while another INR54.25 crore will be used to develop certain non-notified areas near its three CFSs in Panvel for additional parking facilities and drive-ways which is expected to increase its container handling capacity.
