Buoyed by some big-ticket applications by foreign institutional investors (FII), the Coal India initial public offering (IPO) got subscribed over 1.7 times on the second day. Out of the 631.6 million shares which are on offer, bids of over a billion shares were received, according to data on the National Stock Exchange (NSE) website. While QIB was subscribed 3.4 times, High networth individuals (HNIs) and retail category was subscribed 0.54 and 0.35 times, respectively.
?Some FIIs have put in large-sized applications of over $500 million,? said a merchant banker. He refused to divulge the names of the investors. As the Rs 15,000-crore IPO closes on Wednesday for the qualified institutional buyers (QIB), large investments are expected from them on the last day, if the recent trends are any indication.
The Rs 1,000-crore Oberoi Realty IPO?s QIB portion, for instance, was subscribed 2.5 times on the penultimate day, while it got subscribed 22.15 times on the last day of the IPO. Almost all the IPOs have seen similar trend after the market regulator made it mandatory since May for QIBs to bring in the entire subscription amount upfront. Earlier, they had to pay only 10% upfront.
The QIB category, comprising FIIs, mutual funds and insurance companies, received 964 million bids, of which over 95% came from FIIs alone. Punjab National Bank put in application worth Rs 500 crore on Tuesday, as per sources.
Over 2.75 lakh applications were received from retail subscribers with over 69 million bids. ?Retail investors take cues from institutional investors. But in this IPO they are investing along with the institutional investors,? said Prithvi Haldea, MD, Prime Database. ?The issue offers strong fundamentals combined with very attractive pricing,? he added.