Financial Daily from THE HINDU group of publications
Sunday, Mar 07, 2004
Financial Daily from THE HINDU group of publications Sunday, Mar 07, 2004 |
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Foreign Institutional Investors Markets - Public Offer Industry & Economy - Disinvestment FIIs account for 87 pc bids on Day 1 of ONGC issue Virendra Verma
Mumbai , March 6 THE huge demand for ONGC shares on the first day came mainly from FIIs who accounted for bids amounting to over Rs 18,000 crore. Retail investors (investing below Rs 50,000) applied for just 13,520 shares on the first day, compared with 26.14 crore shares that the FIIs bid for. Subscription details of the ONGC public offer indicate that FIIs account for over 87 per cent of the total bids. According to NSE, as many as 29.78 crore shares were bid for, on the total issue size of 14.25 crore shares. The second highest bid came from high net worth individuals (with investment over Rs 50,000) who bid for 7.50 crore shares. Mutual funds bid for 2.26 crore shares and bids from financial institutions (like LIC) were for 83.79 lakh shares. However, primary market experts said bids from retail investors start coming only in the last couple of days of the closure of any offer. They said that the five previous public offers from the Government that closed also received similar response from the retail investors, but as the issue progressed the retail portion was also oversubscribed. A top official of a foreign broking firm said, "ONGC shares were always among the top pick of FIIs. However their exposure in the shares of ONGC is low, as the floating stock in the market is just 4 per cent of the paid-up capital." A dealer of another foreign broking firm said, "There had been demand from FIIs for ONGC shares for large quantity, but this could not be met as there were not enough sellers." Through the public offer, FIIs can bid for large quantity of shares without affecting the stock price, he said.
More Stories on : Foreign Institutional Investors | Public Offer | Disinvestment | Petroleum
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