2 hrs ago
Veegaland Developers IPO Gets 0.62x Subscription on Day One
Veegaland Developers is selling shares to raise money for its real-estate projects and land purchases.
On the first day, investors applied for fewer shares than were available overall.
Retail investors showed the strongest participation among the investor groups.
The company is offering shares for between Rs 130 and Rs 140 each.
One retail lot contains 107 shares and costs Rs 14,980 at the top price.
Shares were reportedly trading at a higher price in the unofficial grey market.
However, grey-market prices can change and do not guarantee the actual listing price.
One brokerage recommended the IPO for investors with a medium- to long-term investment horizon.
Veegaland Developers’ IPO received bids for 70.26 lakh shares against 1.13 crore shares offered, representing 0.62x subscription overall.
Retail investors subscribed 0.82x, while qualified institutional buyers subscribed 0.45x and non-institutional investors 0.39x.
The company aims to raise Rs 210 crore through an issue of 1.50 crore shares priced between Rs 130 and Rs 140 each.
The grey market indicated a Rs 25 premium, or 17.86%, suggesting a potential listing price of Rs 165, though this is unofficial.
Public bidding closes on September 15, with allotment expected September 16 and NSE and BSE listing expected September 18.
- Who
- Veegaland Developers, investors, Geojit Investments, Cumulative Capital and MUFG Intime India.
- What
- Veegaland Developers’ IPO was subscribed 0.62 times on its first bidding day, with the company seeking to raise Rs 210 crore.
- Where
- The Kerala-based company is expected to list on the NSE and BSE.
- When
- Bidding began with Day 1 results reported in the article; the issue closes September 15, allotment is expected September 16, and listing is expected September 18.
- Why
- The IPO proceeds are intended to fund development projects and land acquisition.
Reasons to Consider Applying
Reasons for Caution
Investment outlook
Reasons to Consider Applying
Geojit Investments rated the IPO ‘Subscribe’ for medium- to long-term investors, citing an approximately 1.4x FY26 post-issue price-to-book valuation and expected benefits from Kerala’s real-estate growth.
Reasons for Caution
The IPO was only 0.62x subscribed after the first day, with QIB and non-institutional participation below one time, indicating that those portions were not fully subscribed at that stage.
Potential listing gains
Reasons to Consider Applying
The reported grey-market premium of Rs 25 suggested a potential listing price of Rs 165, or gains of Rs 2,675 per retail lot at the stated lot size.
Reasons for Caution
The article cautions that grey-market premiums are unofficial, fluctuate with market conditions and should not be treated as a guarantee of the listing price.
Key facts
- Issue size
- Rs 210 crore
- Price band
- Rs 130–Rs 140 per share
- Day 1 subscription
- 0.62x overall; the article also describes it as 0.61x in one section
- Investor participation
- Retail 0.82x, QIB 0.45x, NII 0.39x
- Retail lot
- 107 shares; Rs 14,980 at the upper price band
- Grey-market premium
- Rs 25, or 17.86%, implying Rs 165, but it is unofficial
- Expected listing
- September 18 on NSE and BSE
Quotes
Geojit Investments
Brokerage and investment research firm commenting on the IPO’s valuation
“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.”
financialexpress.com
Sources
Related news
Veegaland Developers IPO Opens Amid Growth, Risks and GMP Signals
Veegaland Developers Sets ₹130-₹140 Price Band For IPO
Glass Wall Systems IPO Subscribed 2.18x on Opening Day
Lalithaa Jewellery IPO Subscribed 63x as GMP Signals Premium
Rays of Belief IPO Draws Retail Demand, QIBs Hold Back
