India's NTPC offer covered, but response muted
Font size:
IRJ Feb 8 - A $1.8 billion share sale in No. 1 Indian utility NTPC was just covered on the final day, a less-than-rousing response from investors that could raise questions about a long pipeline of stake sales in state-run firms.
Institutional investors bid for 1.8 times their allocation of half of the 412 million shares offered by the government, but the retail portion drew little response, one banker with direct knowledge of the deal said on Friday.
National Stock Exchange data showed the issue was covered 1.2 times at 5 p.m. (1130 GMT). Recent major Indian IPOs such as from DB Realty and Godrej Properties have been covered more than three times.
Bankers had hoped for more interest from foreign institutions, but the fall in India's stock market to three-month lows amid tumbling global markets has dampened investor confidence. The Indian market is down almost 10 percent in 2010.
Institutional investors bid for 1.8 times their allocation of half of the 412 million shares offered by the government, but the retail portion drew little response, one banker with direct knowledge of the deal said on Friday.
National Stock Exchange data showed the issue was covered 1.2 times at 5 p.m. (1130 GMT). Recent major Indian IPOs such as from DB Realty and Godrej Properties have been covered more than three times.
Bankers had hoped for more interest from foreign institutions, but the fall in India's stock market to three-month lows amid tumbling global markets has dampened investor confidence. The Indian market is down almost 10 percent in 2010.
del.icio.us
Digg
NewsVine
Mixx
FaceBook
Twitter
Email this article
Print
Plain text
