WTI Cabs IPO oversubscribed 148 times on final day; grey market premium declines

The Wise Travel India (WTI) Cabs initial public offering (IPO) witnessed fervent investor interest as it closed on February 14, with the subscription rate soaring to a staggering 148.45 times the offered shares on the last day of bidding. This overwhelming response underscores the enthusiasm among investors for the small and medium enterprise (SME) IPO.

The IPO, which featured a price band of ₹140 to ₹147 per share, amounted to a book built issue worth ₹94.68 crores, comprising entirely of fresh issue shares totaling 64.41 lakh. Investors could bid for a minimum of 1000 shares and in multiples thereof, with the retail segment requiring a minimum investment of ₹147,000. High Net Worth Individuals (HNIs) were required to invest a minimum of ₹294,000 for 2 lots (2,000 shares).

WTI Cabs, a prominent provider of premium cab services, has been experiencing significant growth since its establishment in 2009. Currently operating in over 250 cities across India, the company offers comprehensive transportation solutions primarily to the corporate sector. With an anticipated total revenue of ₹400 crore in the current fiscal year, WTI Cabs reported revenues of ₹190 crore and a net profit of ₹11.33 crore in the first half (April-September 2023).

The allotment for the WTI Cabs IPO is slated to be finalized on Thursday, February 15, 2024

, with the IPO scheduled to list on the NSE SME platform on Monday, February 19, 2024.

Share India Capital Services Private Limited serves as the book running lead manager for the WTI Cabs IPO, while Beetal Financial & Computer Services (P) Limited acts as the registrar for the issue. Share India Securities operates as the market maker for the IPO.

In the grey market, the premium for WTI Cabs IPO shares witnessed a decline on February 14, with shares available at a premium of ₹40, down from ₹76 the previous day. This suggests a potential estimated listing price of ₹187, marking a 27.21 percent increase from the issue price of ₹147. Analysts from investorgain.com have noted a downward trend in the IPO's Grey Market Premium over the past eight sessions, with the range fluctuating between ₹40 and ₹135.

The Grey Market Premium reflects investors' willingness to pay more than the issue price, indicating market sentiment regarding the IPO's potential listing price.