Galaxy Surfactants withdraws IPO before closing | business | Hindustan Times
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Galaxy Surfactants withdraws IPO before closing

Impacted by a poor response to its initial public offer (IPO),speciality chemicals manufacturer Galaxy Surfactants has withdrawn the IPO from the market, a day before it was supposed to close on Friday.

business Updated: May 19, 2011 20:41 IST
HT Correspondent

Impacted by a poor response to its initial public offer (IPO),speciality chemicals manufacturer Galaxy Surfactants has withdrawn the IPO from the market, a day before it was supposed to close on Friday.

The issue, which opened for subscription on May 13, witnessed a tepid response, with the overall offer being subscribed just 0.30 times. The offer had received bids for 14.8 lakh shares till Wednesday, as against 50.4 lakh equities on offer, as per data available on the National Stock Exchange.

The qualified institutional buyers (QIB) portion was subscribed 0.59 times, while the non-institutional investors portion was subscribed a mere 0.04 times and the retail investors segment 0.11 times, the data revealed.

Aggressive pricing was among the main reasons for poor response to the issue. The company had entered the capital market with its IPO of 59.3 lakh equity shares with a price band of Rs 325-340 a share. It is the first public offer to be withdrawn this fiscal.