REC's 156-mln share IPO fully subscribed - bankers

MUMBAI (Reuters) - State-run lender Rural Electrification Corp Ltd's 156-million share initial public offer has been fully subscribed within the first hour of opening, a banker to the issue said.

"The issue is subscribed 1.6 times as of now. Most of the subscription is from QIBs (qualified institutional buyers). Retail and HNI (high net worth individuals) will come in later," said the banker, who declined to be named.

"This is very good response for the first day," he said.

The company has set a price band of 90-105 rupees a share for the offer and will raise a maximum of 16.38 billion rupees ($415 million) at the top end of the range.

The strong interest in the offer comes despite weak market sentiment on concerns of overpriced public offers and a turbulent secondary market.

Earlier this month, three Indian firms withdrew their public offers, citing poor response. These included $165 million Wockhardt Hospitals Ltd offer and the $1.6 billion offer by real estate developer Emaar MGF Ltd.

The offer closes on Feb 22.