Hyderabad-based SVEC Constructions Ltd on Tuesday withdrew its initial public offer citing poor response from institutional investors, an official at its lead manager Karvy Investor Services said.
The company had hoped to raise a minimum 340 million rupees from its 4-million-share public offer, but failed to garner this even after extending the closing date by three days to Feb 13.
The issue received subscriptions for 0.24 times the number of shares on offer so far, data on the National Stock Exchange web site shows.
"There was poor response, mainly from the institutional investors, and based on their feedback, we have withdrawn the issue," Rajneesh Rangari, country head at Karvy Investor Services told Reuters. The money will be refunded within 15 days."
SVEC is the third IPO to be withdrawn from the market within the last week, on account of poor response and a turbulent secondary market.
On Feb. 7, Wockhardt Hospitals pulled its $165 million IPO, followed by real estate developer Emaar MGF, which withdrew its $1.6 billion IPO the next day.
