Saturday, July 05, 2008

Birla Cotsyn extends IPO closing date and price band

MUMBAI - Birla Cotsyn has extended the closing date of its Rs 144.18-crore initial public offering to July 9, said an official with the lead manager of the issue. Further, the price band has been revised downward to Rs 12-Rs 14 per share from Rs 15-Rs 18 earlier, the official said.

The issue opened on June 30 and was to originally close on July 4.

Poor market sentiment has forced the company to extend the closing date. The issue was subscribed 0.46 times till 4 pm on Friday, as per the NSE website. The issue received 3,31,80,350 bids, of which around 1,88,73,750 were at the cut off price.

The qualified institutional buyers’ portion of 3,34,26,667 shares was subscribed 0.01 times, non-institutional investor portion of 1,00,28,000 shares was subscribed 1.16 times, and the retail portion of 2,33,98,667 shares was subscribed 0.54 times. While the employee’s portion of 48,33,333 hardly received any subscription.

The IPO proceeds would be utilised to set up an integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji and Makkapur in Maharashtra. The investment would also fund the company's foray into retail outlets.