Bhagwati Banquets IPO oversubscribed 1.83 times

MUMBAI: The initial public offer of Bhagwati Banquets And Hotels Ltd (BBHL) was oversubscribed 1.83 times on its last day, receiving 3.36 crore bids for the 1.84 crore shares on sale.

After a slow start, which saw the IPO receive nearly 50 per cent subscription till yesterday after opening on April 18, the Ahmedabad-based company picked up speed as it recieved over two crore bids today.

While the QIBs (Qualified Institutional Investors) subscribed to only 42.4 per cent of the 92.27 lakh shares allocated for them, the IPO received decent response from Non-Institutional investors and retail investors.

The IPO offered shares at a price band of Rs 36-40.

Non-Institutional Investors submitted 98.13 lakh bids for 27.68 lakh shares reswerved for them while retail investors bid for nearly 2 crore shares for the 64.59 lakh shares allocated, latest data on the National Stock Exchange shows.

BBHL is raising Rs 92 crore, including promoter contribution of about Rs 20 crore, to set up a 100-room property at Surat.

The company, which operates the Grand Bhagwati hotel, also undertakes outdoor catering, operates food courts and manages rooms and restaurants of Karnavati Club in Ahmedabad.