MUMBAI State utility NHPC Ltd's IPO for up to $1.25 billion was subscribed 23.53 times by 5 p.m (1130 GMT) on Wednesday, stock exchange data showed, in a response that would embolden the government to hurry up stake sales in more firms.
The robust demand for the hydropower generator NHPC, the first IPO by an Indian state company in 18 months, means the deal is likely to be priced at the top of its indicated range of 30-36 rupees per share.
Indian companies have raised about $8.5 billion through share sales so far this year, surpassing the total for all of 2008, powered by a sharp rally in the stock market that has been fuelled by an influx of foreign funds.
The benchmark stock index has risen nearly 90 percent from lows in early March, driven by around $9 billion in net foreign fund flows into the stock market.
Enam Securities, Kotak Mahindra Capital Co and SBI Capital Markets managed the NHPC deal.
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