Grey market brokers corner Equitas Holdings IPO

MUMBAI: A huge over subscription for the IPO of Equitas Holdings could well be attributed to grey market operators. Equitas, which is raising Rs 2,200 crore is the largest equity offering since December 2012, was quoting at a 15-20% premium in grey market.

To corner shares ahead of listing, brokers offered Rs 2000 to each retail applicant who could make a minimum subscription of Rs 15,000 on their behalf. Equitas was subscribed 17 times on Thursday with retail category getting 1.3 times more bids.

Grey market anticipates Equitas to give huge listing gains as it is among the 10 companies in India holding license for exclusive micro finance business.