Mirroring a strong investorappetite, the initial public offer (IPO) of country's largestgold financing company Muthoot Finance got over subscribed11.02 times on the third day of issue today.
The company's IPO received bids worth 48.2 crore equityshares as against 4.3 crore shares on offer, as per a dataavailable with the National Stock Exchange till 17:00 hrs.
Muthoot Finance has entered the capital market with aprice band of Rs 160-175 a share for the IPO of 5.15 croreequity shares.
The Qualified Institutional Bidders portion weresubscribed 25.01 times, while the non-institutional portiongot subscribed 0.98 times and retail investors 1.34 times, thedata showed.
At the lower end of the price band, the company willraise Rs 824 crore, while on the upper end it will mop up Rs901.25 crore.
The bid, which opened for subscription on April 18 willclose today for QIB bidders and tomorrow for retail andnon-institutional investors.
The IPO proceeds will be utilised to augment thecompany's capital base for meeting future capital needs, forfunding of loans and for general corporate purposes.
ICICI Securities, Kotak Mahindra Capital Co are the bookrunning lead managers to the issue, while HDFC Bank is theco-book running lead manager.
Kerala-based Muthoot Finance is a non-deposit taking,non-banking finance company.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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