Click to play videoMumbai: 1100 hrs IST, December 16: The country's largest IPO was just about subscribed 1.1 times, but a few hours later the momentum was reversed. Institutional investors pulled out and the subscription declined to 0.93 times.
Finally, by the time the issue closed after extended hours that evening, the issue was subscribed 1.14 times and the institutional subscription had revived to 1.3 times.
Bankers to the issue attributed this changing subscription pattern to a declining market. Many institutions had resized, repriced or withdrawn their bids on the last day is what they said off the record.
Whatever the reason, Cairn's IPO went down as amongst the most challenging ones in India's market history.
Now SEBI it seems wants to know what exactly happened.
CNBC TV18 has learnt that the market regulator SEBI has asked Cairn's investment bankers including JM Morgan Stanley and DSP Merrill Lynch for details of the QIB book.
Sources say that the regulator may be seeking to analyse how the book was built - particularly on the last day of the issue.
SEBI did not confirm or deny having sent letters. All the regulator said was, "The regulation is not conducted through the media."
However, JM Morgan Stanley (JMMS) did acknowledge that SEBI has asked them for information on the Cairn IPO.
Managing Director JMMS, Dipti Neelakantan, told CNBC TV18, "SEBI has asked all three merchant bankers to furnish them the data about the QIB bids and their revision during the bidding period for the Cairn India IPO. We are furnishing the data asked for by SEBI."
The other lead banker to the issue, DSP Merrill Lynch was not available for comment.
SEBI's interest is being interpreted by industry experts as routine questioning. The investment bankers are expected to give SEBI this data over the next few days.
Experts say that only after SEBI analyses the data, will it be known whether this request for information could become serious.
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