The Hindu Business Line : IT People withdraws follow-on public offer

IT People (India) Ltd, a company providing manpower to the IT/ITES industry, has decided to withdraw its current follow-on public offer due to lack of response from the retail investors.

A notice issued to stock exchanges said, “The company received a favourable response from the QIB & HNI participants in the FPO but due to a lack of response to desired levels from the retail investors (inspite of the issue been completely underwritten by the BRLM’s) the company has decided to withdraw the issue.”

The issue was subscribed 0.30 times, according to the NSE data.

IT People had announced an FPO to raise around Rs 45.25 crore for bettering its technology and expanding business. The application money received would be refunded.

The issue was open for subscription from August 27 and was to close on August 31. The company’s shares are currently listed on the BSE and the newly issued shares were also to be listed on the BSE post the offer, according to a company official.

Certain key strategic investors have proposed for providing of long term equity participation in the company. Khandwala Securities Ltd and Religare Securities Ltd are the book running lead managers to the issue.

The company’s shares were down by 9.88 per cent to close at Rs 31 on the BSE on Friday.

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