Mumbai: The Rs534 crore follow-on public offer of Bharat Earth Movers Ltd (BEML) was fully subscribed on its opening day on Wednesday.
Buying was led by institutional buyers, known as qualified institutional buyers, who subscribed for more than twice as many shares as were reserved for them.
The public issue, priced between Rs1,020 and Rs1,090, will dilute the government holding in the mining and infrastructure company to 54% from 61%.
Retail investors subscribed for 0.03 times the shares reserved for them. The issue will be open for subscriptions through 3 July.
Edelweiss Securities Ltd and HDFC Securities Ltd had given the issue “subscribe” ratings.
“BEML with its large infrastructure, unutilized capacities, and long record of catering to the core sectors is a play on the major infrastructural activities over the next few years,” Harish Sharma of Edelweiss Securities had said in a research report on Tuesday.
The issue hit the market in a month that has seen four successful public offers. All of them have been subscribed several times.
The BEML share closed at Rs1,177.90, up 0.63% on the National Stock Exchange, on Wednesday.