Mumbai: Resurgere Mines and Minerals Ltd received bids for 1.2 times the shares on offer in its initial public sale that closed on Wednesday, bankers to the issue said.
The 4.45-million-share offer was fully subscribed on its last day, according to data from the National Stock Exchange (NSE). The shares were offered in a price band of Rs263-272 each.
Resurgere, in which Merill Lynch holds more than 12% stake, is raising the funds for its extraction and crushing facilities and to purchase six railway wagons.
“It is a small issue. So, it didn’t have a problem in sailing through,” a banker connected to the issue said.
Most bids were received at Rs272, the upper end of the price band, data from the NSE web site showed. The offer will raise about Rs1.2 billion at this price.
“Qualified institutional buyers subscribed 1.3 times and high networth individuals about 2.4 times the issue,” bankers said. The retail portion was subscribed 0.4%.
“The company is expected to finalise the price on Monday, which is likely to be at the upper end,” the banker said.