Wockhardt Hospitals withdraws IPO due to poor investor response
Wockhardt Hospitals Limited has called off the initial public offer due to poor response from investors. Wockhardt Hospitals received bids for only 20% of the proposed issue of 25 million equity shares. The price band for the issue was between Rs.225 to Rs. 260.
Wockhardt Hospitals Chairman Mr. Habil Khorakiwala declined to comment on the development. The company issued a statement today informing that the refunds will be issued within 15 days from the date of close of issue.
The company statement said that due to volatility in stock markets and poor investor response, the public issue has been cancelled. As per the rules, if the initial public offer receives less than 90% bids, the company has to refund the money to investors. This could also cause trouble for real estate giant Emaar MGF.
Emaar MGF reduced the price band twice due to low interest by investors after the stock market crash in January this year. The real estate major also announced a change in the close of issue as only 70% bids were received till 7p.m. yesterday.
As per reports of Technical Analysts, around 21 public issues have been delayed all over the world due to weak stock markets. US economy slowdown fears have caused major erosion to investor money all over the world as stock valuations decreased quite substantially.
Technical analysts are suggesting investors and their clients to keep cash in hand to invest at the right moment in some select stocks. IPOs are considered more risky during the weak markets. Investors are suggested to stay away from IPOs till the time market stabilizes.