The public issue of Repco Home Finance was subscribed by 1.65 times on its closing day on Friday.

The IPO received bids for 2.21 crore shares as against an offer of 1.34 crore shares.

The issue managed to scrape through towards the end of the closing session on Friday after eliciting a lukewarm response since its opening on March 13. On day two, it had garnered a subscription of only 2 per cent.

Avinash Kulkarni, Executive Vice-President, SBI Capital Markets Group, said: “The issue got a good response from market participants with most of the subscription interest coming from long-term institutional investors. The last one hour saw heavy interest mostly from mutual funds and FIIs which helped the issue sail through.”

Promoted by the Government of India enterprise Repco Bank Ltd, Repco Home Finance plans to raise about Rs 270 crore through the issue. It fixed a price band of Rs 165-172 a share by issuing 1.57 crore equity shares at a face value of Rs 10.

Earlier, the professionally-managed housing finance company had allocated 23.31 lakh shares to anchor investors at Rs 172 a share, raising about Rs 40.1 crore.

The anchor investors include Goldman Sachs, Birla Sun Life, Reliance Capital, Nomura India Investment Fund Mother Fund, Citigroup Global Markets Mauritius, Sundaram Mutual Fund, ICICI Prudential Banking and Financial Services Fund and Franklin Templeton Mutual Fund.

The IPO of the National Housing Bank-registered company includes reservation of 1.8 lakh shares for subscription by eligible employees at the issue price. The company has decided to offer a discount of Rs 16 on the issue price to eligible employees.

(This article was published on March 15, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.