The follow-on public offer (FPO) of Tata Steel that closed today has received an impressive response from the investors. According to data available on the National Stock Exchange, the FPO was subscribed 5.97 times until 5pm with bids received for 290.67 million shares, as against 48.68 million shares on offer in the price band of Rs 594 to Rs 610.
Nearly 25 funds, including Abu Dhabi Investment Authority, Macquarie Bank, Credit Suisse (Singapore), Government of Singapore and entities of HDFC Bank and ICICI Bank have bid for the anchor investor portion of the offer.
Tata Steel is expanding the capacity of its Jamshedpur plant to 10 million tonnes a year from 6.8 million tonnes.
It has plants in Singapore, Thailand, UK, South Africa and the Netherlands and plans to build two more factories in India. It currently produces 27.2 million tons of steel annually.
Shares of Tata Steel lost marginal ground on Friday, which was in line with the fall in the benchmark indices. On NSE, the shares closed at Rs 630, down 0.66 per cent.