The initial public offer (IPO) of Deccan Chronicle Holdings was completely sold within minutes of commencement of the issue on Thursday. By 5 pm, the IPO was subscribed by 1.82 times. It received bids for 1.5 crore shares as against 80.1 lakh shares that were offered.
The IPO received the majority of bids at the lower end of the price band of Rs 162 to Rs 194.
By the first hour, the IPO received bids at only two prices: Rs 162 and Rs 165.
As much as 60% of the issue has been reserved for qualified institutional buyers on a discretionary basis, and another 15% for non-institutional bidders.
And 25% of the issue has been allotted for retail individual bidders.
The company’s equity share capital after the IPO, which is open till December 2, will increase to Rs 41.27 crore if the greenshoe option is exercised. Without greenshoe, post-IPO equity share capital will be at Rs 40.06 crore.
The net proceeds of the issue will be used for financing new printing facilities, advertisement and marketing.
The company also plans to set up three new editions for its English daily in Chennai, Trichy and Coimbatore in Tamil Nadu.