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Ortel IPO sails through, offer size cut

MUMBAI: Odisha-based independent MSO Ortel Communications’ initial public offering (IPO) scraped through even as private equity firm New Silk Route (NSR) had to rest with a lower selling of its shares.

NSR, which had put on block six million shares, reduced its offer for sale portion to around 3.67 million.

The IPO did not get adequate response from the high net-worth and retail investors. “The qualified institutional buyer [QIB] segment has been fully subscribed, with participation from mutual funds and insurance companies. The net under subscription in the HNI and retail segments will reduce the offer for sale component by NSR,” said Kotak Mahindra Capital Company, the book running lead manager to the issue.

The IPO received bids for 7.12 million shares against an offer of 9.44 million shares, representing a subscription of 75 per cent of the issue available to the public.

The anchor investors had picked up 2.56 million shares a day ahead of the IPO, which opened on 3 March. ICICI Prudential Life Insurance and Axis Capital had put in Rs 46.29 crore (Rs 462.9 million), coming at the lower end of the price band of Rs 181–200 a share.

Out of the 12 million shares on offer, New Silk Route targeted selling 26.67 per cent stake, representing six million shares of Ortel. This would have meant partial exit as it had 33.3 per cent stake in Ortel.

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