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The initial public offer of the sixth state-run company this year was also the first in three years to be extended due to poor response from investors.
Garden Reach Shipbuilders & Engineers Ltd.’s IPO, which aimed to raise around Rs 345 crore from the primary market, was subscribed 0.67 times on the third and final day of bidding today, according to a filing with the National Stock Exchange. This, the filing said, prompted bankers to extend the subscription period by three working days till Oct. 1.
The price band of the share sale has also been revised down to Rs 114-118 from Rs 115-118. The IPO is a complete offer for sale where the government was looking to divest 25.5 percent of its stake in the shipbuilder.
Six out of the last 10 IPOs conducted by the government in the last three years have witnessed tepid demand and of the eight listed companies, six are trading below their issue prices. The other two companies are the railways engineering and construction firm Ircon International, which is yet to be listed, and Garden Reach.
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