Non institutional investors throng VA Tech Wabag IPO

Overall IPO subscribed 36.22 times

VA Tech Wabag's initial public offering (IPO) ended on 27 September 2010 with 36.22 times subscription. The IPO received bids for 11.33 crore shares compared with 31.28 lakh shares on offer.



Non institutional investors bid aggressively for the IPO with the portion reserved for them getting subscribed 100.98 times. Qualified institutional buyers and retail category were subscribed 36.13 times and 8.55 times respectively.

Bidding for institutional investors had ended on 24 September 2010 while bidding for non-institutional and retail buyers closed on 27 September 2010. The IPO had opened for subscription on 22 September 2010.

VA Tech Wabag had fixed a price band of Rs 1230 to Rs 1310 a share for its Rs 475 crore IPO. Earlier, the company received commitment of Rs 70.90 crore from anchor investors for 5.41 lakh equity shares at Rs 1310 a share.

Rating agency ICRA had assigned IPO Grade 4 to the company's IPO indicating above average fundamentals. The company will use the resources mopped from the IPO for expanding the activities, including acquisitions.

VA Tech Wabag is a multinational player in the water treatment industry with strong presence in developing countries including India, China, Middle East, North Africa, South East Asia, Middle East as well as Central and Eastern Europe.