Mumbai Real estate major Parsvnath Developers on Monday witnessed an impressive opening response for its Rs 1,000 crore initial public offer with the issue getting fully subscribed on the very first day.
The IPO, which opened for subscription on Monday, received bids for about 4 crore shares by the afternoon against a total of 3.3 crore shares that were on offer.
Merchant banking sources close to the development said the issue was well received by the institutional investors, including the domestic and overseas funds, who are upbeat on the prospects of the Indian real estate and infrastructure sectors.
However, the response was relatively subdued for another public issue from Lanco Infratech that also opened on Monday. The issue received bids for about 30 per cent of total 4.44 crore shares on the offer.
However, the bankers said Lanco IPO could also pick up in the coming days, as it might also benefit from the upbeat sentiments over the infrastructure sector.
Both the issues are scheduled to close on November 10. Parsvnath Developers has hit the capital market with a public issue of 3,30,38,000 equity shares with a price band of Rs 250-300 per share.
The issue constitutes 18.30 per cent of the company's fully diluted post-issue paid-up capital. The company has reserved up to two lakh equity shares for subscription by its employees.
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