Ortel Communications' Rs 200 cr IPO to open next week

Public issue, priced between Rs 181 and Rs 200 per share, will remain open till March 5

Cable and internet provider Ortel Communications will launch an initial public offering (IPO) to raise up to Rs 240 crore on March 3.

The public issue, priced in the range between Rs 181 and Rs 200 per share, will remain open till March 5.

The issue will comprise of 12 million equity shares, half of which will be secondary sale by private equity investor New Silk Route.

The remaining 6 million will be fresh equity issuance to help company meet its expansion requirement. Kotak Mahindra Bank is the sole book running lead manager to the IPO.

The Ortel IPO will have to be backed by qualified institutional buyers (QIBs) as the company fails to meet market regulator Sebi's profitability criteria.

At least 75% of the issue will be reserved for QIBs, 15% for high networth investors (HNIs) and 10% for retail. Ortel Communications is the first IPO to 2015. 

Last year, only five companies had come out with IPOs to raise a total of Rs 1,200 crore, the lowest in more than a decade.