The Hindu Business Line : Wockhardt Hospitals’ bids delayed by snag

Mumbai, Jan. 31 Wockhardt Hospitals’ IPO (Initial Public Offering) has become the first casualty of sorts in a volatile stock market. The hospital-major’s IPO that opened on Thursday did not register even a single bid on the first day, it appears, due to a technical glitch that followed its revised price band.

On Wednesday evening, Wockhardt Hospitals had lowered its price band to Rs 225-260, from the earlier Rs 280-310. This late development needed to be incorporated into the “systemic configuration” at the stock exchanges and this is what led to the confusion on day one, a representative with lead-manager Kotak Mahindra Capital Company told Business Line.

Bids made on Thursday were not reflected on the system because of the revision in the price band that required the system to be reconfigured. The bids would get reflected only after they are entered in the system, a process that was kept on hold on Thursday, he explained.

Approval delay

Approvals from the Securities and Exchange Board of India on the bid size of the issue also resulted in the delay, a source familiar with the development said. The bid size, at 20 shares, now remains unchanged despite the downward revision of the price-band, he indicated. The IPO’s closure date also remains unchanged at February 5.

Emaar too cuts band

Real-estate major Emaar MGF, whose IPO opens on Friday, also revised its price band to Rs 540-630, from the earlier Rs 610-690 range.

But unlike Emaar and Wockhardt that cut their IPO price bands, IRB Infrastructure plunged into the volatile capital market with its original price band of Rs 185-220. At 5 p.m., the IRB issue was subscribed by 44 per cent overall.

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Wockhardt cuts IPO price band to Rs 225-260
‘Wockhardt Hospitals IPO on as of now’

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