The company has received around 8,500-10,000 applications for a total amount of Rs 40.99 crore, according to one of the lead managers, UTI Securities. This constitutes almost 86 per cent of the issue amount. If the underwriter picks up shares worth Rs 5 crore, the total subscription would be in the region of 96.9 per cent. Although the promoters had expressed their willingness to bridge the gap in the rights issue to increase their stake, the company will now depend on the underwriter to see the issue through.

However, a final decision on the promoters picking up the shares apart from their rights entitlement would be taken at the SRF board meeting to be held on May 7, thecompany official said.

Most of the financial institutions and corporate bodies have subscribed to their rights entitlement as they held 40 per cent and 11.89 per cent, respectively, in the company. Public holding is around 26.29 per cent. Post-rights, the company's equity will swell from Rs 39.05 crore to a little over Rs 61 crore. The company tapped the shareholders to meet a part of its long-term capital requirements. As part of its financial restructuring programme, the company is retiring high-cost debt to the tune of Rs 209 crore. The company has already received a foreign currency loan of Rs 108 crore from ICICI and IFCI. Apart from this and the rights issue proceeds, the total fund requirement of Rs 253.55 crore is being met from divestment of equity holding in SRF Finance of Rs 32 crore, a term loan of Rs 20 crore from GE Capital Services India and internal accruals to the tune of Rs 43.51 crore.

Along with the rights offer document, DCM Ltd, one of the main promoters of SRF Ltd, had made an offerfor sale of 6.75 lakh CCPs of the latter. However, the response to this offer has not been very encouraging. This is because the CCPs were offered at Rs 74 while the rights offer price was Rs 20. The SRF management also shares the same view as the offer document says: "The company does not expect any shareholder to accept the offer for sale in view of the offer price of Rs 74 per CCP being much higher than the rights offer price of Rs 20 as well as the prevailing market price."

The SRF scrip had been trading in the region of Rs 20 (which is also the rights offer price) when the issue was open for subscription. After the closure of the issue, however, the share touched a high of Rs 23, later slipping down to Rs 21.1.