QIBs and HNIs had preserved and reserved their funds for this CDSL issue and may be for AU Financiers May be that is the reason Tejas and Eris received lukewarn subscriptions.
CDSL GMP at 88 and Kostak at 475... This mean market is expecting 15+ times over subscription by No of Applications. At 1pm its already 10.08 times. This mean, No of applications will be in range of 18 lac to 20 lac. If that do not happen, Either GMP will fall to 75-80 or Kostak will increase to 550-600 range.
Have a basic question on how allotment works. Not sure if this is the right thread to ask, if not please let know where. A) From my limited understanding: if an IPO is over-subscribed, in Retail category, say by 50 times by 20 times unique applicants. The chance of an applicant being allotted one lot is 1:20. Hope this is right. B) For NNI, if the over-subscription is say, 100 times by 5 times unique HNI applicants. How is the allocation done? Same as Retail? Will that mean HNI''s can receive shares worth less than 2 lakh rupees? Thanks.
In case of over subs. in retail , allotment is done by lottery basis. So it means nowdays for eg. i did not get any shares even though i applied for 8-9 lots, and one who applied 2 lots or even one lot got 1. But in case of HNI QIB the allotment is done on a proportionate basis, i,e. the more lots u apply the more chances of allotment.But generally in my point of view its not much use for us, as the over subs. figures are too high still to get any allotment !
Eris priced their IPO very high, so the tepid subsciption numbers, CDSL however is pretty well priced. Tejas, it''s high risk domain. And their last year numbers seems dressed up for IPO. So everyone is going for CDSL. If they don''t even better! Cause better chance of allocation.