The initial public offer (IPO) of Reliance Power Ltd (RPL), which closed for subscription on Friday, received overwhelming response from the investor community.
The issue was subscribed 72.58 times with the total number of bids received standing at 1,654.80 crore-equity shares against the issue size of 22.80 crore-equity shares as per the National Stock Exchange (NSE) demand graph. The total bids received at the cut-off price were 87.31 crore-equity shares.
Most bids came from qualified institutional buyers (QIB) with their portion being subscribed 30.68 times. Bids totaling around 419.83 crore-equity shares came from QIB category over its reserved size of 13.68 crore-equity shares.
Non-institutional investors category was subscribed 32.40 times with issue receiving bids totaling 73.88 crore-equity shares while the retail portion was subscribed 9.02 times.
The issue has offered a discount of Rs 20 to retail investors and at the same time has given them the option of paying only 25% of the total subscription money upfront. The issue fixed the price band between Rs 405 and Rs 450.
Some domestic broking firms had advised their clients to subscribe to the issue only to make profit on the listing day as they expect the stock price to come down after the listing day.