Calcutta, Nov. 2: Jai Balaji Sponge Ltd (JBSL), the first steel company to come out with an initial public offering in the last eight years, has received a reasonably good response with the retail and wholesale portions having been oversubscribed by four times and 12 times, respectively.

The share price was kept at Rs 10 at par and during application only Rs 2.50 had to be paid for each share.

JBSL managing director A Jajodia said the company is trying to get the share listed by the third week of November itself although it has 50 days time as per the Sebi norms.

The huge success of the maiden issue has led the Balaji group to mobilise Rs 100 crore through private placement. It is also setting up an integrated steel plant in Durgapur.

Jajodia said the steel plant, when in place, will boost the group’s financials to a large extent as it will aid Jai Balaji Sponge’s business by taking its sponge iron as raw material for steel making.

The fund garnered from the maiden IPO, however, will be used to part finance the company’s power project in Ranigunj.