The initial public offering (IPO) of Music Broadcast Ltd, which runs FM radio channel Radio City, was subscribed 2.18 times on the second day of bidding on Tuesday, with retail investors continuing to lap up the stock.
The IPO, which comprised 10.45 million shares excluding the anchor investors' portion, received bids for a little over 22.93 million shares, stock-exchange data showed.
Retail investors led subscription activity on day two as well, with the book covered nearly four times the shares reserved for them.
The quota of shares reserved for institutional buyers was subscribed 105% on the second day. The portion set aside for non-institutional investors, such as corporate houses and wealthy individuals, was covered a tad more than 24%.
The IPO had crossed the halfway mark on the first day of the issue on Monday, receiving bids for 5.31 million shares. Retail investors' book was fully subscribed.
Music Broadcast's IPO is the first by a radio operator in over a decade. In November 2005, Times Group-controlled Entertainment Network (India) Ltd, which runs Radio Mirchi, had gone public. Entertainment Network commands a market valuation of about Rs 3,992 crore ($599 million), stock-exchange data show.
Music Broadcast, which is majority-owned by Blackstone-backed Jagran Prakashan Ltd, had on Friday raised Rs 146.55 crore ($22 million) through the sale of shares via anchor allotment ahead of its three-day initial public offering (IPO) beginning Monday. The company issued about 4.41 million shares to 17 institutional investors at Rs 333 per share, stock-exchange filing showed.
Those who bought the shares include funds of Morgan Stanley, BlackRock, Franklin India, Nomura and Pictet Mauritius.
Anchor investors are institutional investors who accept a one-month lock-in period for a sizeable allocation of shares and support a public offering. Their participation highlights investors’ confidence in an IPO and sets a benchmark for the investor community at large.
Among Indian asset managers, ICICI Prudential Asset Management Co, Reliance Capital Trustee Co Ltd and Birla Sun Life Asset Management Co also bought Music Broadcast's shares. Birla Sun Life Insurance Co and HDFC Standard Life Insurance Co were also among the buyers.
In the grey market, MBL shares were quoting at a premium of roughly Rs 50 per share over the price band.
The grey market is a pseudo, over-the-counter market where IPO shares are traded before the official listing on a stock exchange.
Like this report? Sign up for our daily newsletter to get our top reports.