[May 23, 2013] Bids pour in for offers for sale from JSW Energy, Oracle Fin [Financial Express (India)] Tweet (Financial Express (India) Via Acquire Media NewsEdge) The offers for sale by Oracle Financial Services Software and JSW Energy to comply with Sebi's minimum public shareholding norms received an impressive response from investors on Wednesday. While the software company saw bids pouring in for almost four times the issue size, the offer by the Sajjan Jindal Group entity was over-subscribed nearly two times. According to stock exchange data, the OFS by Oracle saw bids for 1.73 crore shares at an indicative price of R2,386.60 against 44.31 lakh shares on offer at a floor price of R2,275. Exchange data further shows that the largest number of bids came at R2,451, which is even higher than the current market price of R2,442. According to merchant bankers familiar with the development, the offer by the MNC company saw the majority of bids coming from institutional investors, including long-only hedge funds, insurance companies and mutual funds. It is believed that foreign institutional investors (FIIs) bid for around 55-60% of the shares on offer and the domestic entities bid for the remaining shares. Meanwhile, the OFS by JSW Energy was subscribed 1.75 times with investors putting in bids for 4.94 crore shares against 2.82 crore shares on offer. In the case of JSW Energy, the indicative price of R61.79 was almost on a par with the floor price of R61.50. While the majority of the bids came from FIIs, a couple of mutual funds also participated in the offer. It is believed that insurance companies stayed away from the sale by the energy major. In both the offers, most bidders chose the option of bidding at 0% margin, with such bids accounting for 81% of the total bids in the case of Oracle. According to Sebi norms, such bids are not allowed to be withdrawn or revised. With the deadline for complying with the public shareholding norms just two weeks away, the coming days would see quite a few such offerings by listed entities. "While we have witnessed a flow of deals from the companies to either lower their promoter shareholdings or de-list from the exchanges, there are still 48 private companies with >75% promoter shareholdings," a note by Bank of America Merrill Lynch stated. Copyright 2013 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com Credit: fe Bureau (c) 2013 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com [ Back To TMCnet.com's Homepage ]