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The initial public offering of Loha Ispaat failed to elicit a favourable response from retail investors on the last day of the share sale.
This was despite the company extending the closing day of the issue by five days and also scaling down the price band to ₹74-77 from earlier range of ₹77-80 a share.
Of the 1.6 crore reserved for retail investors, bids were received for only 47.7 lakh shares (29 per cent), according to the latest data available with the exchanges.
Overall, the company has received bids for 2.08 crore shares against 2.67 crore shares offered. However, the reserved portion of qualified institutional buyers was oversubscribed 1.25 times.
Interestingly, domestic institutional investors and mutual funds have not subscribed to the issue. Earlier, the company allotted 35.35 lakh equity shares as pre-IPO placement to select investors at ₹78 an equity share, mopping up ₹27.58 crore.
Loha Ispaat intended to raise ₹214 crore through the initial public offering to meet its working capital. The issue size constitutes 26.44 per cent of the post-issue paid-up equity share capital of the company. Loha Ispaat has steel processing and servicing plants at Khopoli and Taloja in western Maharashtra.
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