Plastene India withdraws IPO due to poor response

Plastene India, a manufacturer of jumbo bags and BoPP woven sacks, has withdrawn its Rs 75-crore initial public offer on Tuesday due to poor response from investors. This is the third IPO in 2012 that failed to attract investors due to weak market conditions.

Samvardhana Motherson Finance too had withdrawn its Rs 1,665 crore IPO in May, and Goodwill Hospital was another one that cancelled its Rs 62 crore IPO in January.

Plastene India's IPO of 92.55 lakh equity shares was subscribed just 0.29 times, supported only by non-institutional investors. Maximum bids were received at lower end of price band of Rs 81-84 a share.

Qualified institutional buyers completely avoided this issue and retail investors' reserved portion got subscribed just 0.05 times while non-institutional investors' portion got subscribed 1.76 times, as per NSE website.

The book running lead manager Motilal Oswal Investment Advisors Pvt Ltd says the issue of Plastene India Limited has been withdrawn.