The Follow-on Public Offering (FPO) of Bharat Earth Movers Ltd. (BEML) has been subscribed 3.23 times. The ‘mini-ratna’ public sector company received bids for 15.85 million shares as against the issue size of 4.9 million shares.

Majority of the bids came from the Qualified Institutional Buyers (QIBs). This portion of the FPO was subscribed 2.55 times. Even within this space, there was heavy demand from local financial institutions and mutual funds. The company has set a price band of Rs 1,020 to Rs 1,090 per share. The issue, which opened for subscription on June 27, would close on July 3.

Funds raised through the FPO would part-finance BEML’s Rs 3.4 billion project to expand its metro coach facility in Karnataka, set up a windmill, build a research center and for voluntary retirement scheme (VRS).  BEML has capital expenditure plans of around Rs 9 billion, of which half would be raised by this issue and the balance will come from internal accruals.