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Premier Energies' initial public offering (IPO) witnessed an overwhelming response from investors, closing with a subscription rate of 74.4 times on the final day of bidding. This translates to bids worth over ₹1.49 lakh crore, a testament to the strong market confidence in the company's prospects. The driving force behind this remarkable demand was institutional investors, who collectively placed bids worth a staggering ₹1.2 lakh crore.
The institutional demand for Premier Energies' IPO was second only to Tata Technologies, which saw a 69.43 times oversubscription in its ₹3,042.5-crore IPO in November 2022. The institutional bids for Tata Technologies amounted to ₹1.56 lakh crore. This highlights the significant interest shown by institutional investors in the energy sector and Premier Energies' strong position within it.
A total of 332.03 crore shares were bid for, surpassing the 4.46 crore shares on offer. This demonstrates the overwhelming enthusiasm of investors to secure a stake in the company. The qualified institutional bidders' (QIBs) portion witnessed a remarkable oversubscription of 216.67 times, while the non-institutional investors (NIIs) or high net worth individuals segment saw a 50.04 times subscription rate. The retail investors' segment received bids 7.69 times the number of shares offered, reflecting a healthy level of retail investor participation.
Premier Energies' IPO comprises a fresh issue of equity shares aggregating up to ₹1,291 crore and an offer for sale (OFS) of up to 3.42 crore shares by existing shareholders. The company set a price band of ₹427-450 per share. The overwhelming response to the IPO underscores the confidence in the company's growth potential and its ability to navigate the evolving energy landscape. The strong demand from institutional investors is a particularly positive indicator, signaling their belief in the company's future prospects.
Source: Premier Energies' IPO subscribed 74.4 times, QIB demand 2nd highest ever