Mundra Port IPO sold 115 times

Initial share sales by Mundra Port & Special Economic Zone Ltd, the first by a cargo terminal in India, was subscribed by nearly 115 times after the IPO received bids worth $51 billion on the last day of the share sale on Wednesday.

Investors bid for 4.6 billion shares, according to provisional figures posted on the National Stock Exchange's website.

The qualified institutional buyers' (QIB) portion was subscribed by over 33 times, while the non-institutional segment was subscribed by nearly 11 times. This would increase in the final tally.

The Mundra Port, promoted by the Adani family, is located about 70 km from Bhuj in Gujarat. The IPO sought to raise as much as Rs 1770 crore. Mundra offered 40.3 million shares at Rs 400 to Rs 440 apiece. The price will be fixed in the next few days.

Record economic expansion and government plans to spend $500 billion on roads, ports and bridges are luring investors to share sales by infrastructure companies.

The funds will help Mundra set up cargo and coal terminals and develop a trade zone. The Indian unit of Merrill Lynch & Co, Enam Securities, JM Financial Consultants, SBI Capital Markets and SSKI Corporate Finance are arranging the share sale.