Second IPO shelved due to poor show

Within a span of less than three months, two companies have withdrawn their initial public offerings (IPOs) worth over Rs 200 crore due to poor response from investors.

Garments manufacturer Scotts Garments withdrew its IPO last week, after extending the duration of the issue from April 29 to May 3 and lowering the price band from Rs 130-132 to Rs 118-120. The IPO received bids for 27 per cent of the 1.05 crore shares offered, according to NSE data. Retail investors bid for 6 per cent of the 35.19 lakh shares reserved for them.

This is the second IPO to be withdrawn this year after a failed attempt to raise funds  by Sai Silks (Kalamandir) Ltd in February.

Sai Silks’ Rs 89 crore issue was withdrawn on February 18, 2013.