Downturn-hit Claris cuts IPO price, extends closing date
27 Nov 2010
The first victim of the current downturn in the stock market has proved to be the IPO of Claris Lifesciences.
With the issue subscribed just 53 per cent by close of trading on Friday, merchant bankers and the company decided to cut the price band by 20 per cent and extend the date of the offer by another three days to 2 December.
The price band of the stock now stands at Rs228-235 as against Rs278-Rs293 earlier.
According to analysts, the interesting part was that while the retail part was fully subscribed, the institutional part was subscribed just 15 per cent and the non-institutional part, which included HNI investors, a mere 10 per cent. Through the offer, the company plans to raise Rs300 crore.
The company is promoted by the same group that had sponsored the high profile Core Healthcare.
With the price band cut, the promoters will now have to issue more shares to investors to raise the same amount of money.