The follow-on public offer (FPO) of state-run Power Finance Corporation (PFC) got subscribed 9% on its first day today.
PFC FPO, the first disinvestment case by the government in the current fiscal, is expected to raise up to Rs 4,700 crore.
As per the latest data available with the bourses, the FPO was subscribed 9% till 1700 hours.
Out of the total issue size of 22.95 crore, so far bids have been received for 2.14 crore shares.
The price band for the offer has been fixed at Rs 193-203 per share. The offer would close on May 13.
"We expect to get a good response for the FPO," PFC CMD Satnam Singh had said earlier in the day.
The offer comprises issue of about 172,165,005 fresh equity and sale of around 57,388,335 shares by the government, which has 89% stake in the company. PFC is also offering a 5% discount for retail investors and eligible employees.
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PFC plans to use the proceeds to mainly boost its capital base.
The government plans to mop up Rs 40,000 crore through disinvestment programme in 2011-12.