Dinesh Engineers withdraws IPO

Receives bids for 16.51 lakh shares on final day

Dinesh Engineers has withdrawn its initial public offer (IPO) due to poor response. On the third and the final day, the IPO received bids for 16.51 lakh shares, as against 1 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed just 0.17 times. The issue opened for subscription on 28 September 2018 and was scheduled to close on 3 October 2018. The price band for the issue was fixed at Rs 183 to Rs 185 per share.

Book running lead manager (BRLM) to the Dinesh Engineers informed the exchange that the entire application money shall be refunded forthwith and the IPO of Dinesh Engineers may be treated as withdrawn.

Incorporated in 2006, Dinesh Engineers (Dinesh) is a passive communication infrastructure provider providing services mainly to the telecom operators and internet service providers (ISPs). The company has been licensed by Department of Telecommunications (DoT) with the Infrastructure Provider License, under which company can establish and maintain wired networks, Duct Space for the purpose to grant on lease or sale on IRU (Indefeasible right of use) basis to the licensees of telecom operators and ISPs.

The objects of the issue was to use Rs 156.50 crore towards expansion of business by setting up of further OFC Network under IP-1 Licence and balance for other corporate purposes apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.

On a consolidated basis, Dinesh Engineers reported profit after tax of Rs 61.77 crore on net sales of Rs 302.17 crore in the 12-months ended March 2018.

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