MUMBAI Dec 11 India's Credit Analysis and
Research (CARE) has received bids for more than 40
times the number of shares on offer in a stock market debut set
to raise up to $99 million.
The positive response to the initial public offering (IPO)
of the credit rating services provider augurs well for a clutch
of bigger share sales scheduled for this week as firms, which
were forced to shelve plans earlier this year due to volatile
markets, rush to raise funds.
The government's sale of a $1.1 billion stake in miner NMDC
Ltd is set for Wednesday, while telecoms tower
operator Bharti Infratel is selling shares to raise up to $830
million in the country's biggest IPO in two years.
Bharti Infratel, a unit of top Indian phone carrier Bharti
Airtel Ltd, saw demand for 15 percent of its stock on
offer on the first day of the public offering, stock exchange
data showed. The issue closes on Friday.
CARE received more than 250 million bids against 6.1 million
shares it was selling in an offering that was launched on Dec. 7
and ended on Tuesday, stock exchange data showed.
It earlier agreed to allocate about 1.1 million shares to a
group of cornerstone investors, including units of Goldman Sachs
and Franklin Templeton, at 750 rupees a share in a pre-IPO sale.
The company was selling shares in the indicative price range
of 700 rupees to 750 rupees a share.
The strong demand means CARE will price the IPO at the top
end, said two sources with direct knowledge of the deal,
declining to be named ahead of a decision on the listing price.
The company is set to raise $99.4 million at the top end of
the indicative price range.
Bank of America Merrill Lynch and India's Kotak
Investment Banking, Edelweiss, ICICI Securities, IDBI Capital
and SBI Capital Markets are the bookrunners for the CARE IPO,
according to its prospectus.
(Reporting by Sumeet Chatterjee; Editing by Mark Potter)