Business OpportunitiesJindal Cotex IPO subscribed 62% on third day
The initial public offer of textile firm Jindal Cotex got subscribed 62 per cent on the third day of its issue.
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The company has received a total 69.71 lakh bids for its shares representing 0.62 times of the offer size, the latest data available with National Stock Exchange (NSE) shows.
The company has come out to the capital market with an issue size of 1.24 crore shares in the price band of Rs 70-75.
The offer has received an overwhelming response from the non-institutional investors that includes corporates and individuals. In the category, the offer has been oversubscribed (1.34 times). Over 16.12 lakh shares have been reserved for non-institutional investor.
Qualified institutional buyers (QIBs), for which the company has reserved about 50 per cent of the offer, have been subscribed 0.43 times.
At the upper end of the price band, the Ludhiana-based firm expects to garner Rs 93.40 crore, while at the lower end it would raise Rs 87.17 crore.
The textile firm has reserved five-lakh shares for its employees. Till now they have been subscribed 0.02 times of the offer.
Jindal would utilize the IPO fund for setting up a new facility for making cotton yarn and yarn dyeing. The company would also invest funds in its two subsidiaries - Jindal Medicot and Jindal Speciality Textiles.