The follow-on public offer (FPO) of NMDC was subscribed by 0.17 times on the opening day with majority of applications coming from domestic insurance firms. Though the QIB portion subscribed 0.33 times, the FII and domestic mutual funds stayed away from the issue. The Rs 9,800?11,425 crore issue received total bids for 5.71 crore equity shares against the offer size of 33.22 crore shares. Sources said a bid for around 1.5 crore was put in by the state-owned Life Insurance Corporation (LIC), early on Wednesday morning. The bid is learnt to have been submitted at the lower end of the price band of Rs 300-350. According to data put out on the National Stock Exchange (NSE), majority of the bids have been submitted at Rs 300 though a fairly large number came in at Rs 301. According to market participants, given the large size of NMDC offering which is bigger than the Rs 8,300 crore NTPC offering and more than twice the Rs 3,500 crore REC issue, the reponse is fairly good.

The FPO which closes on this Friday offers an upfront 5% discount to retail investors over the issue price which will be discovered via book-building process. The eGoM set the price band for the offer at Rs 300- Rs 350, a discount of 12.6 to 25.1% to the then ruling market price. On Tuesday, the stock lost more than 6% though it recovered on Wednesday to close at at Rs 379.85, up 1.12%.

DQ Entertainment IPO subscribed 85.78 times

The initial public offer (IPO) of DQ entertainment which closed on Wednesday received a tremendous response from all class of investors. The issue was subscribed 85.78 times as total bids received were of over 113.37 crore shares against total issue size of 1.3 crore shares, according to the data provided by the National Stock Exchange (NSE).

The qualified institutional buyer (QIB) category was subscribed by 93.86 times while the non-institutional investor was subscribed by 272.88 times and retail individual investors subscribed at 19.44 times. The issue opened on Monday and closed on Wednesday. The price band of the issue was Rs 75-80 and Fitch rating had graded IPO with grade 3. The book running leading managers for the issue were SBI Capital Markets Ltd. However, employee reservation was only subscribed by 0.36 times. DQ Entertainment had offered 15.73 million shares to the public.