Oil India IPO subscribed 30.6 times on final day

The initial public offer of Oil India (OIL) got subscribed over 30.6 times on the final day of closing today with institutional buyers flocking the counter with maximum number of bids.     

The oil explorer's IPO received bids for 80.93 crore shares against 2.64 crore on offer as on 1600 hrs.     

Investment banking sources said that the portion reserved for qualified institutional buyers got subscribed 54 times, while the non-institutional and retail investors bid 9.77 times and 1.14 times, respectively.     

OIL, a 'Mini Ratna' PSU, expects to raise up to Rs 4,982 crore through the stake sale. The company would be listed on the bourses on September 29.     

This is the second PSU stake sale after NHPC during the second term of the UPA government.      

Marketmen said despite huge subscription of the issue, lack of interest from retail investors is a cause of concern for the primary market.     

"Retail investors are keeping away following disappointing listing of NHPC and Adani Power, while high networth individuals, which have burnt their fingers in the previous issues being unable to meet the IPO financing, are also not showing much interest," SMC Capitals Equity Head Jagnnadham Thunuguntla said.