Readymade fashion garments manufacturer Scotts Garments has withdrawn its initial public offering on Friday after it failed to attract investors.
Readymade fashion garments manufacturer Scotts Garments has withdrawn its initial public offering on Friday on poor subscription response. Despite lowering price band and extending subscription period the company failed to attract the attention of investors in the primary market.
The company extended the issue's closing date to May 3 from April 29, 2013 earlier. It also lowered the price band to Rs 118-120 from Rs 130-132 per share.
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After extending the subscription period, Scotts Garments managed to get just two percent subscription. Till April 29, the issue was subscribed 25 percent. So the total subscription was 27 percent on Friday.
The Rs 126-crore issue received bids for 28.17 lakh shares as against 1.05 crore shares on offer, as per data available on NSE.
At present, the Bangalore-based garment export company has 24 manufacturing units in Karnataka and Tamil Nadu and 95 percent of its products are exported mainly to the US, the UK, Europe and China.
The company intends to use issue proceeds for setting up of unit for trouser manufacturing at Doddaballapur, Karnataka and knitting & fabric processing unit at Kagal - Kolhapur; margin money for working capital of new units; and general corporate purposes.
Keynote Corporate Services and Canara Bank Merchant Banking Division are the book running lead managers (BRLM) to the issue. Link Intime India is the registrar.
It was the second company in 2013 that investors avoided for subscription. Sai Silks (Kalamandir) withdrew its public issue in February.