FIIs gungo on PFC

Powered by overwhelming support from foreign institutional investors (FIIs), the Power Finance Corporation (PFC) public issue got over-subscribed by over 72 times.

This is the largest over-subscription an issue got in recent times, said a market source. In an issue targeted at mobilizing Rs 1000 crore, the PFC raked in close to Rs 75,000 crore, said company sources.

Qualified Institutional Buyers (QIBs) put in bids exceeding 102 times as against the allotted quota. “The huge response demonstrates the confidence reposed by global investors in the Indian economy in general and power sector in particular” said Power Finance Corporation (PFC) chairman and managing director Dr V.K.Garg.

When reports came in last, the institutional sources said that cheques collected at the Ahmedabad counter were yet to be sorted out. PFC had fixed the price band at Rs 73-85 per share.

Meanwhile, the IPO of Indian Bank received 17.01 crore bids for its offer of 8.59 crore equity shares representing 1.98 times subscription, stock exchange data showed.

The price band of the issue has been fixed between Rs 77 to 91. The issue will close on February 9.

The bank has reserved 10 per cent of the issue (86 lakh shares) for employees, while 60 per cent is to be allotted to Qualified Institutional Buyers. The balance 30 per cent is open to retail investors.

Another IPO, which opened for subscription on Monday, of infrastructure company C & C Constructions, received 22,220 bids for its offer of 42,69,451 equity shares of Rs 10 each.

The price band for the issue, which will close on February 9, has been fixed at Rs 270 to Rs 291. The issue would comprise 23.38 per cent of the fully diluted post-issue capital of the company.

The issue proceeds would be used to fund investments in capital equipment, toll projects and enhance working capital.