Real-estate firm Veegaland Developers wrapped up its first day of bidding, with the issue being subscribed 0.62 times. The issue drew bids for 70.26 lakh shares against its offer of 1.13 crore shares.
The Kerala-based firm aims to raise Rs 210 crore through the issuance of 1.50 crore shares of Rs 10 each and has fixed its issue price band at Rs 130 to Rs 140 per share. Ahead of its opening, the firm had raised Rs 63 crore through its anchor book.
On its first day of bidding, the issue drew active investor participation, being subscribed 0.61 times. Healthy participation was seen in the retail investor category, which was subscribed 0.82 times, followed by the qualified institutional buyers segment at 0.45 times, and the non-institutional investor portion at 0.39 times.
On the upper end of the price band, the minimum amount of investment required by retail applicants is Rs 14,980, which equates to one lot of 107 shares. The maximum lot size for them is set at 13.
The lower limit for small high net worth individuals is set at 14 lots, while the maximum they can bid for is 66 lots. Meanwhile, big HNIs can bid for a minimum of 67 lots.
As per the latest update, the company’s shares were trading in the unlisted markets at a premium of Rs 25 or 17.86%, suggesting a listing price of Rs 165. This reflects gains of Rs 2,675 per lot.
However, participants should know that the grey market premium is not an official metric to determine the listing price and fluctuates based on market conditions.
The issue will close for public bidding on September 15, and investors are expected to be allotted their shares by September 16. Bidders are likely to be credited with shares and requisite refunds by September 17.
Veegaland is expected to list on the NSE and BSE on September 18.
Cumulative Capital is the book-running lead manager for the issue, while MUFG Intime India is the registrar to the offer. Through its IPO, the real-estate firm aims to fund its development projects and deploy capital towards land acquisition.
Giving the IPO a ‘Subscribe’ rating for a medium- to long-term investment horizon, Geojit Investments, in a report, said, “At the upper price band of Rs 140, Veegaland Developers is valued at ~1.4x FY26 P/BV on a post-issue basis, which is attractive compared to its peers.”
It added that the company is well-positioned to benefit from the growth of the real estate market in Kerala, which remains supported by a scalable project pipeline. Backed by strong execution capabilities, improving profitability, expanding margins and healthy return ratios, the company offers a compelling long-term growth profile,” it said in its report.