Power Finance Corp QIB portion of FPO oversubscribed

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.

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