Country's largest lender State Bank of India's (SBI) first retail bond issue of Rs 1,000 crore was subscribed over 17 times on the opening day, showing enthused participation from investors.
The issue, which opened for subscription on Monday, will close on October 25.
Market sources said in the bond sale, the portion reserved for wealthy individuals (High Networth Individuals/HNIs) was subscribed by over 16 times, while that reserved for retail investors was oversubcribed 6.4 times.
The offering comprises issue of bonds worth Rs 500 crore, with an option to raise it further by issuing additional bonds, with the total aggregating to Rs 1,000 crore.
The bonds would offer an interest of 9.25 per cent for 10 years and 9.5 per cent for 15 years.
Citigroup, Kotak Mahindra Capital and SBI Capital Markets are the managers for the issue. The bonds are proposed to be listed on the National Stock Exchange.
The application size for retail investors in the issue is Rs 5 lakh, Rs 250 crore for HNIs and Rs 250 crore for qualified institutional buyers (QIBs).
Market sources said electronic subscriptions were not available for retail investors in the said issue.
Market regulator Securities and Exchange Board of India has barred electronic subscription for retail investors to avoid confusion at the time of allotment. The bonds would be alloted to all categories on a first-come-first-serve basis, depending on the date of application.
The bank's scrip was trading 0.31 per cent higher, at Rs 3,177, in the morning trade on the Bombay Stock Exchange.