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Mishra Dhatu Nigam $67 million IPO subscribed 1.2 times

Brokers react while trading during the presentation of the federal budget at a stock brokerage firm in Mumbai, February 1, 2018. REUTERS/Shailesh Andrade/Files

(Reuters) - Indian state-run Mishra Dhatu Nigam Ltd’s initial public offering to raise 4.38 billion rupees ($67.36 million) for the government was subscribed 1.2 times on the last day of the sale on Friday.

Investors bid for about 59 million shares, or 1.21 times the 48.7 million shares on offer, stock exchange data at 1236 GMT showed.

The IPO of Mishra Dhatu - which makes special steels and alloys for sectors such as defence, power and space - follows initial share sales in two other state-run companies this month.

Share sales in state-run companies have received relatively weaker response than in private sector companies in what has been a busy month for Indian IPOs with more than $2 billion of fund-raising planned in March.

Hindustan Aeronautics Ltd’s IPO did not manage to get full subscription, prompting the state-run military aircraft maker to price its offer at the bottom end of the range, and raising a lower-than-expected 41.13 billion rupees for the government.

Bharat Dynamics Ltd, another state-run company, dropped 8.9 percent on its market debut on Friday after its 9.6 billion rupee IPO earlier this month.

Private sector Indian brokerage firm ICICI Securities Ltd’s IPO to raise up to 40.17 billion rupees was subscribed about 36 percent on the second day of the sale. The IPO closes for subscriptions on Monday.

($1 = 65.0250 Indian rupees)

Reporting by Vishal Sridhar in Bengaluru; Editing by Devidutta Tripathy and Subhranshu Sahu