New Delhi: The country's largest lender State Bank of India's (SBI) first retail bond issue of Rs1,000 crore was subscribed over 17 times on the opening day, showing enthused participation from investors, reports PTI.
The issue, which opened for subscription yesterday, will close on 25th October.
Market sources said that in the bond sale, the portion reserved for wealthy individuals (High Networth Individuals) was subscribed by over 16 times, while that reserved for retail investors was oversubscribed 6.4 times.
The offering comprises issue of bonds worth Rs500 crore, with an option to raise it further up to Rs500 crore by issuing additional bonds, with the total aggregating to Rs1,000 crore.
The bonds would offer an interest of 9.25% for 10 years and 9.5% for 15 years.
Citigroup, Kotak Mahindra Capital and SBI Capital Markets are the managers for the issue. The bonds are proposed to be listed on the National Stock Exchange of India (NSE).
The application size for retail investors in the issue is Rs5 lakh, for HNIs is Rs250 crore and for qualified institutional buyers (QIB) it is Rs250 crore.
Market sources said electronic subscriptions were not available for retail investors in the said issue.
They said that the market regulator Securities and Exchange Board of India (SEBI) has barred electronic subscription for retail investors to avoid confusion at the time of allotment. The bonds would be allotted to all categories on 'first-come-first-serve basis' based on the date of application.
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