Jindal Cotex IPO subscribed 24% on first day

The initial public offer (IPO) of the Jindal Cotex received subscription for 24 per cent of the issue on offer on its introduction on 27th August 2009. The company got a total 27.52 lakh bids for it shares, representing 0.24 times of the offer size, according to the data available with the National Stock Exchange (NSE).

The company has entered the capital market with an issue size of 1.24 crore shares in the price band of Rs 70-75. On the first day of offer, the issue was in maximum demand (0.36 times) from non-institutional investors for whom 1.61 lakh shares has been reserved by the company.

In addition, around 50 per cent of the issue size has been reserved for the qualified institutional buyers, which subscribed 0.24 times. At the upper end of the price band, the company expects to get a Rs 93.40 crore, while at the lower end it would raise Rs 87.17 crore.

Meanwhile, the company would utilize the IPO fund for setting up a new facility for making cotton yarn and yarn dyeing. The company would also invest funds in its two subsidiaries Jindal Medicot and Jindal speciality Textiles.