The follow-on public offer of Rural Electrification Corporation got subscribed 3.12 times at the end of the final day on Tuesday on good demand from institutional investors, even as retail investors cold-shouldered it a la the NTPC issue that hit the markets early this month.
The REC issue received bids for over 53.52 crore shares against 17.17 crore shares on offer, garnering a demand of 3.12 times the shares on offer, according to the NSE data.
While the issue was almost fully subscribed (16.58 crore shares) at Rs. 206 a piece, it was over subscribed (23.26 crore) at Rs. 205 per share.
Market sources said domestic institutional investors such as LIC, UTI and SBI actively participated in the FPOThe portion reserved for qualified institutional buyers was subscribed 5.51 times and HNIs bid for nearly two-times more.
However, like the NTPC issue, retail demand remained very tepid at 20 per cent, and even employee demand was only 85 per cent. — PTI