Mumbai: Textile maker Birla Cotsyn (India) Ltd has lowered the price band for its initial public offering after it faced a marginal shortfall in subscription by retail investors, an investment banker associated with the sale said.
The company has revised the price band range to Rs12-14 a share, from Rs15-18 a share. The issue, which was supposed to close on 4 July, will now close on 9 July.
“Given the current market conditions, the perception of the investor fraternity has been affected...we are making the price more attractive,” said Prasad Akolkar, managing director at AllBank Finance Ltd, which is the book running lead manager for the issue.
“The price change has been marginal; it has nothing to do with the fundamentals. We are going with the trend and mood of the market,” he said.
The issue has been subscribed 1.46 times by non-institutional investors, 0.90 times by retail individual investors, or RIIs, and 0.016 times by qualified institutional buyers, as of close of business on Friday, data with the National Stock Exchange showed.
“It is because of the marginal shortfall in RII subscription that the issue was extended. Under Sebi guidelines, subscription by qualified institutions is not mandatory,” Akolkar said. Sebi, or Securities And Exchange Board of India, regulates the equities market in the country.
Mumbai-based Birla Cotsyn is an equal joint venture between diversified Yash Birla Group and textile firm P.B. Bhardwaj group.