The initial public offering (IPO) of Navkar Corporation received a tepid response on the first day. The IPO received bids for 39.01 lakh shares compared with 2.86 crore on offer, translating into a subscription of 14%, according to data available NSE till 7.30 pm IST.
The retail book was subscribed close to 0.16 times. Retail investors, whose investment should not exceed a total R2 lakh as per Sebi rules, bid for 22.71 lakh shares against 1.42 crore on offer.
The non-institutional category comprising high net-worth individuals (HNIs) was subscribed 0.02 times. HNIs bid about 0.96 lakh shares against 61.22 lakh reserved.
Navkar Corporation raised Rs 180 crore through a pre-IPO placement by selling 1.16 crore shares to a total of 15 anchor investors, including Morgan Stanley, Nomura Singapore and Ashburton India Equity Opportunities.
Navkar Corporation plans to raise Rs 600 crore through the IPO, comprising fresh issue of equity shares aggregating to Rs 510 crore and offer for sale of Rs 90 crore by the selling shareholder, namely Sidhhartha Corporation, a member of the promoter group.
The company plans to use the IPO proceeds to develop a logistics park at Valsad, Gujarat, which will have an initial planned capacity of about 4,74,000 TEUs per annum to be commissioned by September 2016. Navkar Corporation is an operator of container freight stations in India. The company operates in close proximity to the Jawaharlal Nehru Port, the largest container port in India.
This is the 11th IPO of calendar 2015. Ten firms — UFO Moviez India, MEP Infrastructure Developers, Inox Wind, Adlabs Entertainment, Ortel Communications, PNC Infratech, VRL Logistics, Manpasand Beverages, Syngene International and Power Mech — have raised a total of Rs 4,672.1 crore so far.
