The follow-on-public offer (FPO) of Tata Steel was subscribed 2.21 times till noon on the final day of issue on Friday
As per the data available on the National Stock Exchange, the steel major’s FPO attracted bids worth 10.75 crore shares against 4.86 crore equities on offer.
The company had fixed the public offer price band between Rs. 594-610 a share.
“The lucrative pricing of the issue has attracted investors towards the public offer. So far the issue looks very strong,” Ashika Brokers Research Head Paras Bothra said.
With the FPO of 5.7 crore shares, which includes 83.25 lakh anchor investor shares, the company will garner Rs 3,477 crore at the higher end of the price band, while it will raise Rs 3,385 crore at the lower end of the price band.
Tata Steel plans to use the FPO proceeds to fund its ongoing expansion project in Jamshedpur and for repaying its debt.