Air Deccan IPO scrapes through, reduces price band and extends date

The low-cost carrier Air Deccan Ltd whose IPO hit the markets last week just managed to scrape through on the last day - May 23, 2006. But, the company after consulting its lead managers extended the subscription 3 more days till May 26, 2006. The company also reduced the price band from Rs.150 - Rs.175 to Rs.146 to Rs.175.

The issue had received lukewarm response from investors after the meltdown of secondary markets in the past few days. There were no takers for the issue and it received a subscription of only 22% till the afternoon on May 23, 2006.

As at 9 PM on May 23, 2006 the issue had received a subscription of 1.11 times. The QIBs (Qualified Institutional Bidders) portion received subscription for .9912 times, Non Institutional Investors portion received subscription for 1.1558 times and the retail investors portion got subscribed by 1.2622 times.

The company´s IPO opened on May 18, 2006 and scheduled to close on May 23, 2006. The company is coming out with an IPO of 24,546,000 Equity Shares of Rs.10 each at a revised price band of Rs.146 to Rs.175.

Source : Equity Bulls

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