Tepid response to Federal Mogul OFS, bids received for less than 10% shares

The Rs 415-crore offer for sale (OFS) launched by MNC firm Federal-Mogul Goetze got a cold shoulder, with investors subscribing to less than 10 per cent of the shares on offer. The 12.14-million share offering got bids for just 114,734 shares. Meanwhile, Federal-Mogul’s shares hit the 5 per cent down-limit for the third day in a row.

Market participants said high valuation and low liquidity at the counter was behind the poor response.

The base price of the OFS was Rs 342, a 25 per cent discount to the stock's closing price on Friday. Shares of Federal-Mogul on Tuesday ended