Thinksoft lowers IPO price band, extends closure

Thinksoft Global Services, a small information technology (IT) company, today extended the closing date of its initial public offer (IPO) and revised the price band after a lukewarm response to the issue.

While the subscription period has been extended by four working days till October 1, the price band has been revised to Rs 115-125. The earlier band was Rs 120-130.

The IPO, earlier scheduled to close today, was subscribed just 62 per cent, according to data from the National Stock Exchange. The issue size is 36.46 lakh equity shares.

This is the first case of a company extending its IPO and revising the price band this year. In 2008, some big IPOs, including that of Emaar MGF and Wockhardt Hospitals, had seen revisions in price bands. The two had to subsequently drop their plans for IPOs due to lack of investors appetite.

“Investor sentiment has been hurt by the lacklustre listing of NHPC and Adani Power. Not many people want to invest in IPOs of companies that do not have strong brand names. All eyes are now on Oil India and the primary market can revive only if its shares register significant listing gains,” said a stock broker.