The core size of the issue was pegged at Rs 750 crore. It carried a 100 per cent greenshoe option.

Speaking to The Financial Express, IDBI chairman GP Gupta said: "We have received a very good response. The latest issue has mopped up Rs 300 crore more than the previous issue. We always keep a safe limit of oversubscription... Till Friday, the mopup was to the tune of Rs 1,100 crore. On Saturday, we must have received another Rs 100 crore."

With this issue, which had opened on September 21, IDBI has mopped up Rs 2,100 crore from the retail market this year out of an annual target of Rs 5,000 crore. The institution has received the Securities & Exchange Board of India (Sebi) clearance for an umbrella issue of Rs 5,000 crore in 1997-98. "Wewill hit the market with the next retail issue in December," Gupta said.

Gupta ruled out any impact of the Unit Trust of India's flagship US-64 controversy over the IDBI bond issue. "In no way is this a poor performance. The issue mopped up the expected amount. In this market, a Rs 1,200-crore mopup is a success," he said.

Senior analysts said the IDBI issue should have received a better response considering the fact that the US-64 controversy has created a crisis of confidence among retail investors. "When investors lose faith in one scheme, they get out of it and subscribe to safer instruments. However, that has not been the case this time," a senior analyst with a brokerage said.

The Industrial Development Bank of India Flexibond issue consists of four instruments. The seven-year regular income bond offers 14 per cent annual return and carries a put option after five years at 13.75 per cent. The growing interest bond offers a step-up interest rate structure of 11 per cent in the first year to 20 percent in the seventh with an annual put option.

The other two instruments are the deep discount bond which offers to return Rs 25,000 on a investment of Rs 10,000 in seven years and the education bond offering five equal payments or lumpsum payment at the end of five, seven and 10 years.

The regular income scheme is reported to have received a better response with almost half of the applications accounting for this instrument.

Meanwhile, ICICI has announced October 26 as the launch date for its next safety bond issue which is offering higher coupons compared with the previous retail ICICI debt issue.