Friday, March 15, 2013

Repco Home Finance IPO

Repco Home Finance, a professionally managed and NHB registered housing finance company has come out with an IPO of 1,57,20,262 equity shares of face value of Rs 10 each. The company is promoted by Repco Bank Limited, a Government of India enterprise. The issue includes a reservation of 1,80,000 equity shares of Rs 10 each for subscription by eligible employees at the issue price. The issue shall constitute 25.29 percent and the net issue (issue less the employee reservation portion) shall constitute 25 percent of the post issue paid-up capital of the company, respectively.

The IPO shall open on 13 March, 2013 and shall close on 15 March, 2013. The company has fixed a price band at Rs 165-172 per equity share. Bids can be made for a minimum of 75 equity shares and in multiples of 75 equity shares thereafter. The company has decided to offer a discount of Rs 16 on the issue price to eligible employees. The maximum shares that a retail investor can apply is 1200 on lower band and 1125 on higher band.

The company intends to utilize the proceeds of the IPO for augmentation of capital base to meet future capital requirements.

The equity shares are proposed to be listed on the NSE and the BSE. The book running lead managers to the issue are SBI Capital Markets Limited, IDFC Capital Limited and JM Financial Institutional Securities Private Limited. Karvy Computershare Pvt Ltd is the registrar to the issue.

Recommendation:

ICRA has assigned grade 3 to the IPO indicating average fundamentals to the issue. We would recommend this IPO to investors from medium term view, though if you get listing gains, encash them.

Subscription:

Repco Home Finance IPO got 1.65 times subscribed.

At the close of the IPO,
QII segment got subscribed by 3.39 times
NII segment got subscribed by 0.35 times
Retail segment got subscribed by 0.51 times
Employees segment got subscribed by 0.57 times

Allotment:

Click here to check Repco Home Finance IPO Allotment status!

Listing:

Repco Home Finance IPO got listed on 1 April, 2013.  The IPO touched an intra-day high of Rs 176 and intra-day low of Rs 158.05 before closing the day at Rs 168.85 against its issue price of Rs 172 per share.


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