Public Sector Undertaking Issues Received Strong Response Despite Tepid Stock Market

Public Sector Undertaking Issues Received Strong Response Despite Tepid Stock Market

PSU IPOs and Schemes Performance

The government-owned corporations are termed as Public Sector Undertaking (PSU) in India. As of the report, the government plans to dilute its stake through public offerings and fund schemes. In early, the govt told that it will reduce its stake in IRCTC over 12.6 percent through an initial public offering. IRCTC and Bharat 22 ETF saw a fabulous response to their issues. So one and all are believed that public sector undertaking issues received strong responses despite tepid stock market.  According to the reports, IRCTC IPO has received bids for 112 times to actual size of the IPO. Meanwhile, Bharat 22 ETF was subscribed by over 12 times. Indian Railways IPO fixed a price band range at Rs 315-320 per equity share. But, a source declared that the PSU shares of IRCTC IPO will list at a premium to its price. 

With this response, IRCTC IPO became the most subscribed PSU IPO ever. The IPO raised over Rs 645 crore. While the fourth tranche of Bharat-22 ETF opened for subscription on 3rd October and closed on 4th October. It was subscribed more than 12 times in the last of bidding on 4th October. The issue received bids worth Rs 23,500 crore. As of the report, the government planned to raise over Rs 2,000 crore along with a green-shoe option of Rs 5,000 crore.

The government has decided to utilize the green-shoe option and retain the additional Rs 4,368 crore worth bids received, said by the Department of Investment and Public Asset Management (DIPAM). Nimesh Shah, MD, and CEO, at ICICI Prudential AMC, added that “We believe investing in this ETF is one of the ways of owning jewels of corporate India which seek to provide growth and stability.” 

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