Mumbai: The initial public offering (IPO) of Rural Electrification Corp. Ltd (REC) saw huge oversubscription by the end of its last day on Friday, despite a turbulent primary market that saw three offers being withdrawn within a week earlier this month.
The state-run lender’s 156-million-share offer attracted applications for 27.3 times the number at close of trading on Friday, according to data on the National Stock Exchange’s website. Bankers said some retail applications were yet to be recorded. Subscriptions by qualified institutional buyers were about 35 times and by high networth individuals about 14 times, bankers said. They expect the retail portion to be subscribed between seven and eight times. “Most bids have come in at Rs105,” a banker said.
The IPO, priced in the Rs90-105 band, had been fully subscribed within the first hour of its opening.
The company is expected to finalize its pricing—at the top end—after consultation with the Union government, on 25 February.