The Indian government’s Rs 40,000 crore disinvestment programme for the current financial year has started on a positive note with the follow-on public offering of Power Finance Corporation (PFC) getting subscribed 3.58 times shares offered on Thursday.
The portion reserved for qualified institutional buyers was subscribed 6.92 times on Thursday, the last day of bidding for this category of investors, data available on the National Stock Exchange website showed. The categories reserved for retail and non-institutional investors, for whom the issue closes on Friday, were subscribed 34 per cent and 1 per cent, respectively.
The price band for the issue has been kept at Rs 193-203 a share. Retail investors and PFC employees will get 5 per cent discount on the issue price. Shares of PFC closed down 0.92 per cent at Rs 215.90 on the Bombay Stock Exchange.
“Considering asset-quality issues that could creep up as exposure to private sector increases, we have assigned an estimated FY13 P/ABV multiple of 1.4 times, 20 per cent lower than PFC’s median P/ABV multiple since listing,” Angel Broking analysts said in an FPO note.
POOR SERVALAKSHMI SHOW
May Initial Public Offers (IPOs) continue to disappoint. The share price of Servalakshmi Paper closed at a massive 34.4 per cent discount to its offer price, on the first day of listing . The share closed at Rs 19 on the BSE against the issue price of Rs 29 a share. On NSE, it fell 37 per cent at Rs 18. The debut was at 3.4 per cent premium at Rs 30.
AANJANEYA LIFECARE SUBSCRIBED 1.11 TIMES
The Initial Public Offer of Aanjaneya Lifecare Limited was subscribed 1.11 times on the third day. The QIB portion remained under-subscribed at 0.14 times while the non-institutional segment was subscribed 2.65 times. The subscription in the retail segment was 1.84 times as of Thursday. The issue has a price-band of Rs 229-240 a share.