Karvy processes 21.3 lakh retail applications in nine days.
MUMBAI: About two-thirds of the retail applicants to the Reliance Petroleum Ltd (RPL) initial public offer (IPO), which will get listed latest by May 11, can be sure about allotments.
Karvy Computershare, which was contracted to act as registrar and transfer agent to the Rs 2,700-crore book-built offer, has processed a record 21.3 lakh retail applications in nine days, since the issue closed on April 20, 2006.
On May 3, 2006, the Bombay Stock Exchange approved the basis of allocations for 19.39 lakh valid applications, making it the largest book-built IPO in terms of the number of applications. However, only 12.47 lakh applications were successful. This means that only 64.33% of the total valid applications got allotments. Refund and credit despatches will take place on Thursday and Friday.
Karvy Computershare’s successful handling of the IPO comes at a time when the registrar and, in fact, the entire Karvy Group, is under fire from the Securities and Exchange Board of India (Sebi) in the IPO scam.
According to Sebi’s interim order, Karvy Computershare cannot contract fresh assignments in corporate registry and share transfers, though it can do business with existing clients and undertake deals already contracted.
Karvy officials said they have around 15-20 IPOs lined up, including those from GMR Infrastructure, DLF and Power Finance Corporation. Karvy Computershare acts as corporate registrar to over 300 companies.
The previous record for the number of applications was during the October 2004 National Thermal Power Corporation issue, again handled by Karvy, which received 14.4 lakh applications. The IPO from Tata Consultancy Services in August 2004, the only other issue to receive more than 10 lakh applications, was also handled by Karvy Computershare.
Out of the 13.5 crore shares available to retail investors in the RPL IPO (30% of the issue size of 45 crore shares), applications were received for 186.37 crore, according to the basis of allocation report approved by the BSE. This meant the retail portion was subscribed 13.80 times. Karvy officials said there were around 2,000 people working over three shifts daily to make the allotment process a success.
