NSDL IPO booked 41x; Sri Lotus Developers’ issue subscribed 69 times

The primary market witnessed robust investor interest this week as the initial public offerings (IPOs) of National Securities Depository Ltd (NSDL), India’s oldest and largest depository, and real estate developer Sri Lotus Developers were subscribed multiple times, thanks to strong institutional as well as retail participation. While the ₹4,011.60-crore IPO of NSDL was subscribed 41 times on the final day of bidding today, Sri Lotus Developers' ₹792-crore issue saw even greater traction, getting subscribed 69 times.

As per data available on the exchanges, the NSDL IPO was subscribed 41.02 times, receiving bids for over 144 crore shares worth ₹1.15 lakh crore against 3.51 crore shares offered. The public issue was subscribed 103.97 times in the qualified institutional buyer (QIB) segment, followed by 34.98 times in the non-institutional investor (NII) segment. The quota reserved for retail investors was booked 7.76 times, while the employee portion was subscribed 15.42 times.

Meanwhile, the Sri Lotus IPO was subscribed 69.13 times on the final day of bidding, generating demand close to ₹55,000 crore with more than 34 lakh applications. The issue received bids for 2,74,16,88,500 shares against the 3,96,58,730 equity shares offered, as per exchange data. The QIB and NII portions were subscribed 163.90 times and 57.71 times, respectively, whereas the retail portion was booked 20.27 times. The employee portion received 19.83 times subscription.

The price band for the Sri Lotus IPO was ₹140-150, while that of NSDL was ₹760-800 per share.

The NSDL IPO is entirely an offer for sale (OFS) of 5.01 crore equity shares by existing shareholders, including IDBI Bank, NSE, SBI, HDFC Bank, Union Bank of India, and others. The market capitalisation of NSDL is pegged at around ₹16,000 crore at the upper end of the price band.

On the other hand, the IPO of Sri Lotus Developers was a completely fresh issue of equity shares with no OFS component. The real estate developer, engaged in the construction of residential and commercial premises in Mumbai, intends to use IPO proceeds to invest in its subsidiaries for funding the development and construction cost of their ongoing projects.

Out of ₹792 crore, Sri Lotus Developers will utilise up to ₹550 crore for investment in its subsidiaries - Richfeel Real Estate Private Limited, Dhyan Projects Private Limited, and Tryksha Real Estate Private Limited. A part of the capital will be used to meet general corporate purposes, as per the DRHP.

Both NSDL and Sri Lotus Developers' IPOs have created a buzz in the grey market, commanding double-digit premiums over their issue prices. NSDL shares were commanding a grey market premium (GMP) of ₹130, indicating a listing price of around ₹930, up 16.25%. In a similar trend, Sri Lotus Developers’ last GMP was ₹42, estimating a listing price of around ₹192, a premium of 28% over the issue price.

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