WonderLa’s IPO is now oversubscribed 37.5x with more than 46 crore shares bid for (there were only 1.45 cr. shares on offer).

Read: WonderLa, a Low Priced IPO of a Theme Park, posted yesterday.

 

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The bids have, largely come at 125 or cut-off. Retail investors, who had around 50 lakh shares reserved for them, have bid for at least 2.89 cr shares (“Cut-Off” is only for retail) which is a 5x oversubscription.

Chances of allotment are low because even with proportional allotment they might have to pick randomly to decide which investors to allot shares.  I believe with this kind of the demand the share should see a premium of 30% to 50% on listing.

Effectively with 46 crore shares applied for at Rs. 125, that is 5,800 crore rupees that is allocated to the listing. And we’re not at the end of the day yet.

This is the beginning of mad IPO season and if this is successful, I expect a whole lot more. This is a great buildup before a big drop, and I would keep my stop losses tight and unadjusting, but I will participate!

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