NEW DELHI: Route Mobile, whose IPO received strong response from high-net worth individuals (HNIs) and qualified institutional bidders last week, is likely to finalise the basis of allotment on Wednesday.

The issue, which was sold from Sep 9 to Sep 11 in the price band of Rs 345-350, was subscribed 73.3 times.

There are expectations that the stock will see strong investor response on market debut. The unofficial market for unlisted shares is already reflecting this sentiment, with the stock quoting a premium of Rs 194-197 per share, according to Dinesh Gupta of Unlisted Zone, an outfit that deals in unlisted shares.

Assuming that an HNI has borrowed money at 7 per cent interest rate for Route IPO with 192.81 times subscription and upper band price of Rs 350, the cost of funding would be Rs 90.59 i.e. Rs 350 (issue price, say) X 192.81 (number of times subscription) X 7/100 (assuming 7 per cent rate of interest) X 7/365 (assuming money borrowed for seven days). The breakeven for HNIs taking leverage on Route Mobile IPO at 7 per cent for seven days thus comes at Rs 440 (Rs 350+Rs 90.59).

The issue turned out to be a blockbuster with the qualified institutional buyers (QIBs) portion getting subscribed 89.76 times, non-institutional investor portion 192.81 times and retail individual investors quote 12.67 times.

The stock is expected to get listed on Monday, Sep 21.

Those who bade for the issue can check the subscription status on the online portal of Karvy Computershare Private, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.

The registrar is responsible for complying with the time deadlines for updating the electronic credit of shares to successful applicants, dispatch and uploading of refunds and attending to all investor-related queries after the issue is completed.