Bank Of India Rs 675cr Issue Oversubscribed

Bank of India's (BoI) Rs 675-crore public issue has been fully subscribed even though the issue still remains open. Bank source said that the bank management expects the issue to be oversubscribed at least twice.

Till late on February 26, 2.1 lakh subscriptions had been received by the bank, sources said. Of the Rs 315-crore worth of shares which had been offered to the public, over Rs 320 crore had already been subscribed till now.

The amount to be paid on application for the issue is Rs 25 per share for a share priced at Rs 45 - face value of Rs 10 and premium of Rs 35. So far Rs 179 crore has been received as application amount.

 

With most financial institutions, corporates and large subscribers usually waiting till the last day or two before subscribing, the bank management fully expects the issue to be oversubscribed at least twice, sources said.

One senior officer said this kind of response has been unprecedented in the capital market in recent times.

Since this response has been forthcoming primarily from the small and the retail investors, it is clear that investors in the market will respond if an issue is fundamentally a good one, he added.

He said the overwhelming response to the issue is particularly important because it comes on the eve of the budget which faces the tough task of reviving the flagging capital market under extremely difficult circumstances.