QIBs ensure success of Power Finance Corp's follow-on offer
13 May 2011
State-run Power Finance Corporation's follow-on public offer, which closed today, has been subscribed 3.64 times, thanks mainly to support from qualified institutional buyers (QIBs).
The FPO received bids for 83.58 crore shares against the 22.95 crore shares on offer. The offer comprises a fresh issue of 17.21 crore equity shares and an offer for sale of 5.73 crore equity shares by the government, which holds about 89.78 per cent stake in PFC.
The QIB category was subscribed 6.92 times. The non-institutional investors' category was subscribed 0.01 times, retail individual investors category was subscribed 0.34 times and employee reservation category was subscribed 0.15 times.
India's largest insurance company, the state-owned Life Insurance Corp, subscribed for Rs4,600 crore worth of shares.
ICICI Prudential Life applied for shares worth Rs875 crore, while sister concern ICICI Prudential MF subscribed for shares worth Rs500 crore.
Merill Lynch and GS p-note subscribed Rs700 crore each. Reliance MF put in bids for Rs450 crore worth of shares, HDFC MF Rs300 crore, Standard Pacific Rs900 crore and GMO Rs170 crore. Birla MF subscribed for shares worth Rs126 crore and Birla Life for Rs200 crore.
Banks too stepped in to get a small chunk - ICICI Bank subscribed for Rs700 crore worth of shares, Axis Bank for Rs500 crore and SBI Rs200 crore.