Resurgere Mines IPO subscribed 0.42 times on day one

MUMBAI: Resurgere Mines & Minerals India on Monday got subscribed 0.42 times on the first day of its initial public offer.

The issue, through which the company is planning to raise about Rs 121.04 crore, received bids for 18.75 lakh shares against 44.50 shares on offer, as per the latest data available on the National Stock Exchange.

The price band of the issue has been fixed between Rs 263 to Rs 272, and the offer would close on August 13.

At the upper end of the price band the company would raise up to Rs 121.04 crore, while at the lower level it would raise about Rs 117.04 crore.

The portion reserved for qualified institutional buyers, which included foreign institutional institutions, domestic financial institutions and mutual funds, got subscribed 0.65 times the shares on offer, while non-institutional investors received bids for 0.57 times of the shares on offer.

However, portion reserved for retail investors remained under subscribed.

The company plans to utilise the issue proceeds for purchasing plant and machinery and purchase railway rakes to set up own logistics infrastructure facilities and funding working capital requirements.