Monte Carlo makes a 'flop' debut

Monte Carlo made its debut on the bourses today and truly, it has been a flop show till now. Listing at Rs.585 on the BSE, this was over 10% below its issue price of Rs.645.

The issue met a thumping success and was subscribed over 8 ties. It received some 2.5 crore bids worth Rs.15,000 crore while it aimed to raise Rs.350 crore. Institutional investors were the biggest subscribers with their portion subscribing 14 times while retail saw 6.6 times subscription. HNI portion saw just 1.7 times subscription.

We had given a very clear “NO” to our readers, asking them to avoid putting money in the IPO. The issue was made mainly to facilitate the part exit of the promoters and PE investor, Samara Capital, which had acquired shares, being 18.51% stake at Rs. 435 per share, in June 2012. Samara’s holding has now come down to 10.94% and promoter holding, currently at 81.06%, has declined to 63.63%.