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Steel company Loha Ispaat Limited’s initial public offer (IPO), the first to hit the market in 2014, will close on Thursday. The company has so far received bids for 20 per cent of its total offer of nearly Rs 214 crore, with one day to go, according to data available on the exchange websites.
Non-institutional or high net worth individuals bid for 14 per cent of the shares reserved for the category. Retail investors bid for around six per cent of the shares meant for them. Interestingly, qualified institutional buyers, bid for 1.24 times the 2.6 million shares available for them, exchange data showed.
The company has issued 26.7 million shares, looking to raise up to Rs 213.6 crore at the upper end of its price band of Rs 77-80. The funds raised were to be used to meet working capital requirements, according to a company statement.
The company is part of the steel industry. It procures steel coils and processes these before supplying to customers in various industries including automobiles, packaging and companies in the infrastructure space.
A spokesperson for the company declined to comment on the response to the offer.
