CARE IPO fully subscribed on Day 2

Rating agency CARE’s Rs 540-crore initial public offer (IPO) got fully subscribed on the second day of the public issue today.

The IPO attracted bids for 79.87 lakh shares against 71.99 lakh shares on offer, translating to 1.11 times subscription, as per data available with the National Stock Exchange at 1700 hrs.

The category reserved for Qualified Institutional Buyers (QIBs) was subscribed 2.46 times, while non-institutional investors’ portion received 5 per cent subscription.

Shares reserved for retail investors got subscribed 69 per cent.

The company has fixed the price band at Rs 700-750 per share and proposes to raise Rs 504 crore at the lower end and Rs 540 crore at the top end from the issue.

The offer will close tomorrow.

CARE (Credit Analysis and Research Ltd) is promoted by major banks and financial institutions and the three largest shareholders are IDBI Bank with 26 per cent, Canara Bank at 23 per cent and State Bank of India holds 9 per cent.

Kotak Securities, Bank of America-Merrill Lynch, Edelweiss Capital, ICICI Securities, IDBI Capital and SBI Caps are the book-running lead-managers to the issue.

CARE is the third rating agency in the country to go public after Crisil and Icra.

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