DB Realty IPO gets 2 times oversubscribed

News Posted - 2010-02-13

Mumbai-based real estate company DB Realty, has obtained substantial response with its initial public offering getting subscribed 2.08 times as of yesterday, the second day of the offer.

The Rs1,500-crore IPO, with a price band of Rs468- Rs486, has already received good response from anchor investors.

The majority of reserved portion was subscribed at lower end of the price band by foreign institutional funds such as Janus Capital, which picked up close to 43 per cenr of the allocated portion and India Capital Fund (5.14%).

None of the private equity investors who have a stake in the company are exiting through this IPO, which gives further confidence to investors.

The IPO, which closes today, has garnered 5,52,19,024 bids in response to total issue size of 2,64,95,984 shares with 1,63,114 bids at cutoff price.

The majority of the IPO proceeds (Rs 1,388 crore) would be used to meet construction and development-related expenses