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Citing poor market sentiments, healthcare service provider Wockhardt Hospitals said on Thursday that it is withdrawing its initial public offering of 2.5 crore equity shares, constituting 24.06 per cent of the proposed post-issue paid up equity share capital of the company.
"The decision not to proceed with the IPO was made in the light of continued global and domestic market volatility and poor market sentiments and the resultant effect on the subscription levels in the IPO," Wockhardt Hospitals said in a statement.
The company said it would refund the collected money from IPO within 15 days starting today- the closing day of the IPO.
In the recent history, it is the first major public issue to have have been shelved, reflecting an uncertainty over the IPO market that had yesterday forced Emaar MGF to extend its bidding period while revising downward for the second time its offer price.
According to latest data at the stock exchanges, the IPO received bids only for 19.5 per cent of the total 2.5 crore shares on offer. Earlier, the company had revised downwards its price band and extended the bidding period by two days amid volatile market conditions and lukewarm response from investors.
The company had cut its price band to Rs 225-260 per equity share from Rs 280-310 earlier.
The firm was planning to raise about Rs 650 crore through the IPO to help repay debt and fund its expansion plans. Source : The Economic Times |
