Weak response from institutional buyers forced theme park operator Adlabs Entertainment to lower its initial public offering (IPO) price band and extend the closing date by three working days.
In a filing with the stock exchanges, the lead managers to the issue said the price band would be revised to ₹180-215 for an equity share, against the previous band of ₹221-230. The bid/issue period has been extended till Tuesday, March 17. At the higher end of the new price band, the company’s offer size got reduced to ₹437 crore from the original target of ₹460 crore.
Cold shoulder to IPOs?Of the 1.76 crore shares on offer (excluding anchor investors’ portion), only about 43.6 per cent were subscribed. The retail portion of the issue, at 10 per cent, was fully subscribed.
The primary market has been giving the cold shoulder to public issues. Last week, regional cable TV company Ortel Communications had to cut its ₹240-crore size offer to ₹140-crore, while the ₹70-crore offer by NCML Industries, failed the test after ending its issue period undersubscribed. Despite this, wind power firm Inox Wind plans to raise ₹1,000 crore next week through an IPO, the biggest offer in over a year.