Strong demand for Carlyle-backed Repco Home Finance IPO - update

In total, investors bid for around 22 million shares, around 1.6x the 13.4 million shares on issue across the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Institutional investors had bid three times the number of shares reserved for them.

According to VCCircle, the issue initially saw a poor response from investors, being just 2% subscribed by its second day. Retail investors fully subscribed to their portion but the issue did not see much interest from non-institutional investors, which included high networth individuals (HNIs) and corporates, who bid for just over a third of shares reserved for them.

RHF, a subsidiary of India's Repco Bank, was looking to sell a total of 15.7 million shares at INR165-172 apiece, representing 25-29% of its post-issue paid-up capital. The company aims to raise as much as INR2.7 billion ($49 million).

RHF has already raised INR400 million through anchor investors including Goldman Sachs India Fund, Reliance Banking Fund, Nomura India Investment Fund Mother Fund and Franklin India Prima Fund.

Proceeds will be used by RHF to meet future capital adequacy requirements. The company has a strong focus on southern India and has a loan portfolio of over INR31 billion as of September 2012. The loan portfolio grew at a compounded annual rate of 41% between March 2008 and September 2012.

Carlyle invested around INR1 billion in RHF between 2007 and 2009, through the purchase of a 49.7% stake. The PE firm sold a little over 23% in secondary transactions to Wolfensohn and Creador. It also sold 2.78% to Antique Broking and Shardul Securities, raising a total of INR1.9 billion through all sales.

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• Topics
• South Asia
• Financials
• Exits
• India
• The Carlyle Group
• IPO
• Exit
• Wolfensohn India Advisors
• Creador