Dinesh Engineers withdraws Rs 1.85-bn IPO due to weak market conditions

Last month, housing finance firm Aavas Financiers' Rs 17-billion IPO had managed to garner only 97 per cent subscriptions

Telecommunication infrastructure provider Dinesh Engineers on Wednesday withdrew its Rs 1.85-billion initial public offering (IPO) due to weak market conditions. 

The investment banker to Dinesh Engineers “has informed the exchange that the entire application money shall be refunded forthwith and the IPO of Dinesh Engineers may be treated as withdrawn,” said a notification to the National Stock Exchange (NSE). Dinesh Engineers, whose IPO opened on Friday, managed to garner only 17 per cent subscriptions. Weakness in the markets of late is adversely impacting the primary market. 

Last month, housing finance firm Aavas Financiers’ Rs 17-billion IPO had managed to get only 97 per cent subscriptions. State-owned Garden Reach Shipbuilders & Engineers’ Rs 3.4-billion IPO had just about managed to scrape through on Monday, but not without a reduction in the price band and extension of the closing day. Investment bankers say it is unlikely that any company would launch share sale till the secondary market stabilises.