Mumbai, March 13: The Oil and Natural Gas Corporation’s (ONGC) public issue, which closed today, has received cumulative bids 6.45 times its offer size. Most of the bids are for Rs 750 per share — the higher end of the price band.
According to the data available with the Bombay Stock Exchange (BSE), investors placed cumulative bids (on both BSE and NSE) for over 91.94 crore shares compared with the issue size of 14.26 crore shares.
The maximum bids for 51.07 crore shares were placed at Rs 750, while bids for 11.50 crore shares were placed at Rs 680, the lower end of the price band.
According to National Stock Exchange’s (NSE) figures for Friday, foreign institutional investors (FIIs) were the largest bidders at 64.92 crore shares. Mutual funds, financial institutions, retail investors and insurance companies followed close behind. Employees and shareholders of the corporation also took part in the issue.
Sources tracking the issue said the retail quota, accounting for 25 per cent of the issue, would be filled up by the close of subscription.
Merchant banking circles associated with the issue said overseas institutional investors had actively bid for the offer across the price band of Rs 680-750.
They added that though bidding was closed, the data processing work would continue till late in the night to ascertain the exact level of response. S. Ramesh, co-head, Kotak Investment Banking said the final figures would crystallise by midnight.
The ONGC issue, where the government expects to mop up over Rs 10,000 crore, is the largest offer for sale in the history of the Indian capital markets.
Recently, some questions were raised about the accuracy of the subscription figures due to some overcounting in the data collation process. However, senior officials of the exchange had yesterday clarified that the data was collected on a continuous basis at aggregate level for book-built issues and there could have been some over-estimation. They added that the netting was not done for multiple options and it was not possible to specify the extent of overcounting.
However, a few merchant bankers have maintained that the government has not erred in its over-subscription figures in its five offers for sale. They have said that the final subscription figures were provided to the government by the book-running lead managers and were not taken from BSE’s website.