Mumbai: Tepid demand and choppy market drove Parag Milk Foods to lower offer price for its maiden issue as well as extend the closing date for receiving applications from investors.
The initial public offering, which was due to close on Friday, has now been extended till Wednesday The price band has been revised to Rs.215 -227 from Rs.220- 227 in order to "accommodate pending demand from certain international and domestic investors, " said a company release.
The issue opened for subscription on May 4, but received a muted response, partly due to its steep pricing, analysts said.
According to market grapevine, the IPO may have been extended as some institutional investors could not upload their bids due to technical issues. However, this was not confirmed by the intermediaries involved in the equity offering.
The issue was subscribed 1.3 times at the end of the third day on Friday, receiving total bids for 2.54 crore shares against 1.92 crore shares on offer, NSE data showed.
The portion for qualified institutional buyers (QIBs) was under-subscribed at 0.55 times, while the quantum reserved for non-institutional investors and retail individual investors was subscribed 2.66 times and 1.72 times, respectively.
The portion reserved for employees was subscribed 0.96 times.