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C.R. Sukumar

Hyderabad , Jan. 23

DESPITE volatile capital market conditions, the follow-on public issue of Andhra Bank has been subscribed by over 11 times. As against 8.5 crore equity shares offered by the bank, it received bids for over 93.55 crore shares.

With the highest bid price standing at Rs 90, the bank in consultation with the book running lead managers has fixed it as the issue price. The bank received bids for 83.21 crore shares at price bids of Rs 90 and bids for 8.21 crore shares at the cut-off price. This takes the total bids received at issue price to 97.74 per cent of cumulative bids.

Sources told Business Line that the public issue portion of qualified institutional buyers (QIBs) category was subscribed by 19.84 times. The category of non-institutional investors was subscribed by 7.71 times. The bank received good response from the retail investors with the category subscribed by 3.2 times.

As against 3.82 crore equity shares reserved for the QIBs, the bank received bids for 75.9 crore shares. Of this, foreign institutional investors have bid for 31.61 crore shares, domestic financial institutions 24.64 crore shares, mutual funds 19.63 crore shares and others 99,900 shares.

Against 1.14 crore shares offered for non-institutional investors, the bank received bids for 8.85 crore shares. Of this, the corporates have bid for 4.35 crore shares, individuals other than retail individual investors 3.96 crore shares and others 53.02 lakh shares.

While 2.67 crore shares were reserved for the retail individual investors, the bank received bids for 8.57 crore shares. Of this, Andhra Bank obtained bids for 7.53 crore shares at cut off price, while bids for 1.04 crore shares were received at price bids, sources said.

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