Reflecting confidence in the strength of Indian economy and the ability of car major Maruti Udyog Ltd, foreign investors are believed to have accounted for majority of the bids totalling over 10.5 crore (105 million) shares for MUL's maiden public offer.

Domestic financial institutions like Industrial Development Bank of India, Industrial Finance Corporation of India, Unit Trust of India and other major players are yet to approach the issue, sources close to MUL's IPO process indicated saying only one or two Indian Banks have so far put in their applications.

The trend on day one of the IPO clearly indicated that the car major, which accounted for 60 per cent of the domestic market share last month, recorded an unprecedented success with oversubscription to the issue by about 45 per cent, without the help of domestic FIs, which are largely under government's control, sources said.

With an overwhelming majority of over 85 per cent bids being placed at Rs 120 per share and above against the floor price of Rs 115 a share of Rs 5 face value, the sources said the initial response could only fuel greater demand for the scrip, thus belying speculation that the IPO was being overpriced by the company.