CARE to raise up to $99 mln in IPO amid strong demand

MUMBAI Tue Dec 11, 2012 8:26pm IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Credit Analysis and Research (CARE) (CREI.BO) 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 (NMDC.NS) 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 (BRTI.NS), 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 December 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 (BAC.N) 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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage