Chennai-based Sri Priyanka Geo Commex, which supplies minerals and manufactures rice bran oil, has decided to withdraw its IPO after receiving a muted response from investors as of June 29. According to reports from Moneycontrol, the company cited prevailing adverse market conditions as the primary reason for the withdrawal decision, made in consultation with its merchant banker.
The company had approached the capital markets last week to raise ₹94.5 crore through an initial public offering of 44.58 lakh shares, comprising an entirely fresh issue. As reported by Moneycontrol, the price band for the offer was fixed at ₹207-212 per share. The initial share sale opened for public subscription on June 24.
The maiden public issue failed to cross even the 50 percent subscription mark, garnering 32 percent subscription as of June 29, compared to 31 percent in the previous session. According to Moneycontrol, the issue received bids for 14.32 lakh shares against the offer size. Horizon Management was appointed as the merchant banker for the Sri Priyanka Geo Commex IPO.
The main objectives of the IPO were the repayment of loans and meeting working capital requirements, as reported by Moneycontrol. The withdrawal of this IPO represents another example of challenging market conditions affecting smaller company public offerings in the current environment.
