The initial public offer of Oil India Ltd got subscribed over 30.6 times on the final day of closing on Thursday with institutional buyers flocking the counter with maximum number of bids.
The oil explorer's IPO received bids for 80.93 crore (809.3 million) shares against 2.64 crore (26.4 million) on offer as on 1600 hrs. Investment banking sources said that the portion reserved for qualified institutional buyers got subscribed 54 times, while the non-institutional and retail investors bid 9.77 times and 1.14 times respectively.
OIL, a 'Mini Ratna' PSU, expects to raise up to Rs 4,982 crore (49.82 billion) through the stake sale. The company would be listed on the bourses on September 29.
This is the second PSU stake sale after NHPC during the second term of the United Progressive Alliance [ Images ] government.
Marketmen said despite huge subscription of the issue, lack of interest from retail investors is a cause of concern for the primary market.
"Retail investors are keeping away following disappointing listing of NHPC and Adani Power, while high networth individuals, which have burnt their fingers in the previous issues being unable to meet the IPO financing, are also not showing much interest," SMC Capitals equity head Jagnnadham Thunuguntla said.
"This signals that the confidence in the primary market is yet to bloom fully," Thunuguntla added. Under the twin offer for disinvestment in OIL, which produces 3.5 million tonnes of oil annually, the company will offer fresh equity of 2.64 crore (26.4 million) shares or 11 per cent, while the government will put on offer 10 per cent of its stake in the company to state refiners.
