"Clearly public sentiment around India is positive, and it makes sense for companies to take advantage of that to raise capital at a lower cost than what they were able to do earlier," said Manpreet Gill, head of fixed income, currencies and commodities investment strategy at Standard Chartered Bank.
Market sources indicate that the investor appetite was so low that individual investors subscribed to fewer SBI shares. Also the cap on the number of investors at 49 made it difficult for the bank to raise the required amount.
Nipun Sharma, Research Analyst, Mirae Asset Mgmt tells CNBC-TV18 that unless the government reduces loses in the sector and provides a reliable subsidy sharing mechanism, investor interest is going to be hard to come by in the oil and gas space.