Initial public offering (IPO) of Punjab based Jindal Cotex has been subscribed 62% on day 2. A total of 6,971,850 bids were received out of which 2,082,690 bids were received at the cut-off price.

Non institutional investors led the race subscribing 1.34 times. This was followed by retail individual investors and qualified institutional buyers (QIBs) who subscribed 0.65 times and 0.43 times respectively.

The price band of the issue has been fixed at Rs 70 to Rs 75 for each equity share. The issue closes on Sep. 1, 2009. The company has proposed a public issue of approximately 12.45 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue also comprises reservation of 500,000 equity shares of Rs 10 each for subscription of eligible employees.

The net issue to public comprises of 10.75 million equity shares to be decided through a 100% book-building process. The issue will constitute 43% of the fully diluted post issue paid-up capital of the company. Saffron Capital Advisors (P) and Bigshare Services (P) are helping the company in the fund raising process.

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