Browns Investments IPO oversubscription tops 5 times

Browns Investments Ltd’s Rs. 250 million IPO had been oversubscribed by 5.3 times, the registrars to the offering SSP Corporate Services said yesterday.

The IPO involved 50 million shares at Rs. 5 and it had drawn 17,501 applications requesting for 266.6 million shares worth Rs. 1.33 billion reflecting a 5.3 times oversubscription.

There had been 17,476 applications via bank draft and cheques requesting for 94.24 million shares worth Rs. 471.2 million whilst applications via bank guarantees were 25 requesting for 172.4 million shares worth Rs. 862 million. 

Browns Investments is a diversified company with interests in leisure, plantations, manufacturing, construction, cable manufacturing, agriculture and hydro power generation. It has plans to further expand in leisure as well as enter real estate.

Proceeds from the IPO will be used to finance a new 150 room Samudra Beach Hotel in Kosgoda via subsidiary Samudra Beach Resorts Ltd.