Bangalore’s Realty Developer, Puravankara Projects had a weak debut on stock exchange listing at Rs 360, way below the revised offer price of Rs 400. Imagine what would have happened if the stocks were alloted at Rs 525. We thank our IPO Analyst for pro-actively writing against the company’s abnormal valuation and thus helping investors.
The IPO had ended on 8 August 2007 with 1.91 times subscription. The qualified institutional buyers (QIBs) category was subscribed 2.7 times, the non institutional investors category – made up of corporates and high networth investors – was subscribed 0.98 times. The retail individual investors category was subscribed 0.63 times.
The company had revised the price band of the IPO to Rs 400-Rs 450 per share, compared to the previously set price band of Rs 500 – Rs 525 a share, amid volatile secondary market conditions prevailing at that time.