For the first time this fiscal the term lending institution is set to become successful in hitting the greenshoe target of its retail float. The issue, with a core size of Rs 750 crore and carrying a greenshoe option of another Rs 750 crore, will close on January 15.

An IDBI official said the institution has received the Securities & Exchange Board of India's approval for extending the deadline for the closure of the issue. "We have extended the date for closure of the issue on the basis of demand by retail investors wanting to subscribe to it as we were not able to receive subscriptions on January 12 due to nationwide bank strike," said the official.

"In the past couple of days, we have received lots of subscriptions due to expectation of a rate cut in the near future," he said.

Though the IDBI official could not provide figures relating to funds mobilisation, he expects this issue to garner more than IDBI's Flexibond-IV issue last year.

According to the lead managers of the flexibond-V issue, there is a last minute rush by retail investors wanting to subscribe to the issue as they are expecting reduction in the interest rates.

IDBI flexibond-V offers four instruments: regular income bond, growing interest bond, multi-option bond and infrastructure bond. The regular income bond offers an annualised interest of 14 per cent per annum, 13.5 per cent semi annually and 13.3 per cent quarterly. The bond maturity period is seven years.

The growing interest bond offers an annual interest of 11 per cent per annum for 1st year and 20 per cent per annum for the seventh year. The bond offers an early encashment option after a minimum period of one year.

The multiple option bond offers an equal interest payment at the rate of 17.5 per cent after two years wait or 22.5 per cent per annum after three years wait or 30 per cent per annum after four years wait. The maturity period of the bond is seven years.

The infrastructure bond which offers tax benefit to investors under section 88, 54EA and 54EB offers 12.5 per cent per annum for three years (under sections 88 and 54 EA) and 13 per cent per annum for seven years (under section 54 EB) with an annual and cumulative interest option.