The FPO from Power Finance Corporation Limited has been fully subscribed. Today the issue closed for QIB’s and that portion was subscribed 6.92 times. This is a good level of subscription and shows the appetite that the share has generated. The HNI portion was hardly subscribed while the retail portion was subscribed by a third with one more day to go. The overall issue is subscribed 3.58 times.

I believe this is a good opportunity for retail investors to subscribe to the issue as it offers decent returns for investors in the immediate and medium term. This being an FPO already has a discovered price and there is a discount for retail investors of 5%. The discount plus the difference between the current price and the upper end of the price band is the margin of safety for the investor.