Another initial public offer (IPO) has fallen flat, the third primary issue since January 1 to do so. The public issue of a small company Plastene India Ltd, which sought to raise up to Rs 78 crore ($14 million), has been withdrawn on the final day after the issue could muster only 29 per cent subscription.
The issue did not see any participation from institutional investors and negligible bids from retail shareholders, even as HNIs and corporates oversubscribed their portion of the issue. Motilal Oswal Investment Advisors was the book running lead manager to the issue.
Plastene, a Gujarat-based manufacturer of packaging materials, joins healthcare firm Goodwill Hospital and Samvardhana Motherson Finance Ltd to withdraw their IPOs this year.
Earlier, Samvardhana Motherson Finance Ltd, the holding company of the automotive component manufacturing group Samvardhana Motherson, saw its issue subscribed just 23 per cent or less than a quarter.
Goodwill Hospitals withdrew its IPO in January while Galaxy Surfactants pulled out its IPO in May 2011 due to poor response. Goodwill has since then refiled its documents for its public float.
But these withdrawals have not stopped others to line up their issues. SAIF Partners-backed Speciality Restaurants and Just Dial are in the pipeline to go public. Speciality Restaurants is opening its issue on May 16.