Highway Infra IPO tops HDB Financial, DOMS in Applications count; What are allotment odds?

Highway Infrastructure IPO, which saw a historic response from investors during the bidding process, has now left investors wondering what are the odds of getting the allotment of shares after a stellar bidding for the issue. Interestingly, all the categories have a maximum of only one per cent chances of allotment of shares.

The IPO of Highway Infrastructure fetched more than 46.36 lakh applications. Net of the Rs 23.4 crore anchor book, the IPO of Highway Infrastructure fetched bids worth Rs 33,750 crore for its Rs 106.6 crore offering as the issue was overall booked a stellar 300.61 times. Allotment is likely to be out by Friday, while shares of the company shall be listed on Tuesday, August 12.

On an individual basis, the quota for qualified institutional bidders (QIBs) was booked 420.57 times, fetching bids worth Rs 6,750.33 crore. The allocation for non-institutional investors (NIIs) was booked 447.32 times, attracting bids for Rs 18,452.06 crore for their allocation. Retail portion was booked 155.58 times, getting bids for Rs 8,556.95 crore for their allocation.

Marking its place in the IPO history of India, Highway Infrastructure became the sixth biggest issue in terms of application, following Waaree Energies, Bajaj Housing Finance, Tata Technologies, LIC of India and Reliance Power in the order. It surpassed the giants like recently listed HDB Financial Services and others including DOMS Industries, Glenmark Life and SBI Cards.
 

Here is the tentative odds allotment matrix in Highway Infrastructure IPO for the investors:

Big HNI category: one investor out of 96 investors will get 2,954 shares (Probability: 1.04 per cent)

Small HNI category: 1 investor out of 29 investors will get 2,954 shares (Probability: 0.23 per cent)

Retail category: 1 investor out of 4 investors will get 211 shares. (Probability: 0.83 per cent)
 

The IPO of Highway Infrastructure was open for bidding between August 05 and August 07. The Indore-based company had offered its shares in the fixed price band of Rs 65-70 per share with a lot size of 211 shares. The company raised Rs 130 crore via its primary offering, which included a fresh share sale of Rs 97.52 crore and an offer-for-sale of up to 46.40 lakh equity shares.

Grey market premium (GMP) of Highway Infrastructure has remained firm following a bumper response from investors, signaling a strong listing at the bourses. Last heard, the company was commanding a premium of Rs 36-40 in the unofficial market, indicating a listing pop of 51-57 per cent for the investors.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it. Pantomath Capital Advisors is the book-running lead manager of the Highway Infrastructure IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.