Muthoot Finance IPO over subscribed 11.02 times on Day 3 | india | Hindustan Times
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Muthoot Finance IPO over subscribed 11.02 times on Day 3

india Updated: Apr 20, 2011 20:26 IST
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Mirroring a strong investor appetite, the initial public offer (IPO) of country's largest gold financing company Muthoot Finance got over subscribed 11.02 times on the third day of issue on Wednesday.

The company's IPO received bids worth 48.2 crore equity shares as against 4.3 crore shares on offer, as per a data available with the National Stock Exchange till 1700 hrs.

Muthoot Finance has entered the capital market with a price band of Rs 160-175 a share for the IPO of 5.15 crore equity shares.

The Qualified Institutional Bidders portion were subscribed 25.01 times, while the non-institutional portion got subscribed 0.98 times and retail investors 1.34 times, the data showed.

At the lower end of the price band, the company will raise Rs 824 crore, while on the upper end it will mop up Rs 901.25 crore.

The bid, which opened for subscription on April 18 will close on Wednesday for QIB bidders and on Thursday for retail and non-institutional investors.

The IPO proceeds will be utilised to augment the company's capital base for meeting future capital needs, for funding of loans and for general corporate purposes.

ICICI Securities, Kotak Mahindra Capital Co are the book running lead managers to the issue, while HDFC Bank is the co-book running lead manager.

Kerala-based Muthoot Finance is a non-deposit taking, non-banking finance company.