On first day, NDTV IPO subscribed 3.3 times

The investor appetite for new share offerings is continuing. The initial public offering (IPO) of New Delhi Television (NDTV) India Ltd was oversubcribed within 15 minutes of the opening of the offer on Wednesday. The issue was oversubscribed by over 3.3 times on the first day as it received bids for 5.74 crore shares as against 1.73 crore shares which are on offer.

The 100 per cent book-built IPO is priced at the band of Rs 63-70 per Rs 4 paid up share. On day one of the NDTV IPO, the maximum bid came at Rs 70, the higher end of the band. The issue will close for subscription on April 28, 2004.

NDTV plans to raise Rs 109 crore and the IPO comprises of fresh issue and offer for sale by the private equity investors. Of the total proceeds, about 35 per cent will go to the existing shareholders who are offering shares by way of offer for sale.

Post IPO, the holdings of the promoters Dr Prannoy Roy and his family will come down to just over 52 per cent.