Scotts Garments has extended the public issue window till May 3 and also revised the price band downwards to Rs 118-120 from Rs 130-132 a share.
The initial public offering of Scotts Garments failed to get enough response from the public.
As against an offer for 1.05 crore shares, the company received bids for just 26.40 lakh shares till 5 p.m. on Monday — the original last day for the bidding.
This translates to just 25 per cent of the offer. The company had proposed to raise Rs 139 crore by offering 1.05 crore equity shares of Rs 10 each at a price band of Rs 130 to Rs 132.
Now, if successful, the company will raise only Rs 126 crore.
Scotts Garments manufactures hi-fashion ready-made garments. It has domain expertise in providing sampling and design and has additional facilities such as embroidery, printing, dyeing and washing. At present, it is largely engaged in manufacturing and export of ready-made garments.
The company has planned to use the funds for setting up a unit for trouser manufacturing at Doddaballapur, Karnataka, and knitting and fabric processing at Kagal, Kolhapur.
Canbank Venture Capital Fund picked up 17.4 lakh shares at a price of Rs 115 a share in the company in a pre-IPO placement.
Rating agency CARE has given it an IPO Grade of 3. This grade indicates that the fundamentals of Scotts Garments IPO are ‘average'.
Scotts Garments was the fourth company to tap capital markets this calendar year through initial public offering.
Earlier this year, Sai Silks Kalamandir withdrew its IPO, due to poor response.
While the Repco Home Finance public issue sailed through comfortably, thanks to last-hour buying, the Rs 95-crore IPO of V-Mart Retail was subscribed fully, thanks to institutional investors.
Though the Repco Home stock is quoting at Rs 173, a tad above the IPO price of Rs 172, V-Mart Retail is trading at a steep discount at Rs 175 against the issue price of Rs 210.