The initial public offering of Jet Airways on Friday received bids for 3.11 crore shares from investors against the issue size of 1.72 crore shares within few minutes of opening of bidding.
The initial response trend indicates that institutional investors, both domestic and international, are actively placing bids, merchant banking sources said on Friday.
The bidding price band for 100 per cent book built issue is Rs 950 - 1,125. About 90 per cent of bids received are at Rs 1,125, upper end of the price band, sources said.
The institutional investors have placed bids 3.7 times the maximum allocable shares for this segment, they said. The bidding for public offer would close on February 24.
The private airline is raising up to Rs 1942.50 crore (Rs 19.42 billion) from the capital markets and part of the proceeds would be used to retire some debt of the company.
Of the total offer, Jet Airways is making fresh issue of 1.42 crore equity shares and balance 30.21 lakh shares are an offer for sale by Tail Wings Ltd.
Out of total offer, 12 lakh shares are reserved for Jet Airways employees. There would be 60 per cent allocation for institutional investors, up to 15 per cent to high net worth individuals and up to 25 per cent to retail investors.
Deutsche Equities India Pvt Ltd, HSBC Securities and Capital Markets (India), UBS Securities India Pvt Ltd, Citigroup Global Markets India, DSP Merrill Lynch Ltd and Kotak Mahindra Capital Company Ltd are book running lead managers for the IPO.