REC and V-gaurd IPO receives warm welcome

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Mumbai, Feb 19 (UNI) Medium and low price-band Initial Public Offers (IPOs) of Rural Electrification Corporation (REC) and V-Guard Industries received warm welcome by the investors today as they were subscribed 2.13 and 1.10 times respectively.

The REC issue, which debuted today, received a strong response and aided the rally on Indian bourses in the afternoon trade. The IPO received bids for 33.32 crore shares as compared to 15.61 crore shares on offer before the session ended. Around 25.48 lakh share bids were received at the cut off of the issue, which is priced in the Rs 90-105 per share band, according to the data sources.

Similarly, another issue in the price band of Rs 80-85, V-Guard Industries IPO, was subscribed 1.10 times on the second day of the subscription. The offering of 80 lakh-share, received 87.72 lakh bids so-far. Around 7.67 lakh bids were received at the cut-off price, as per the NSE website.

This revival of investors' interest in the medium-price band IPOs could be attributed to the recent rebound in the local brouses amid high volatility, senior official of a leading private broking company told UNI.

As the market is passing through a phase of consolidation and correction and the global trends are quite volatile, the investors are much cautious in selecting the investment destinations, he added.


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