Ortel Communications IPO subscribed 0.15 times on first day

The initial public offer (IPO) of regional cable TV services provider Ortel Communications was subscribed 0.15 times on the first day of the issue today.
The IPO received bids for 13,92,675 shares against 94,42,575 shares on offer, reflecting a subscription of 0.15 times, data available with the NSE said.
Ortel entered the capital market with a public issue of up to 1.2 crore equity shares of face value of Rs 10 each.
The public issue of up to 1,20,00,000 equity shares include anchor portion of 25,57,425 equity shares.
The issue is priced between Rs 181 and Rs 200.
The issue will close on March 5.

Qualified Institutional Buyers (QIBs) portion was subscribed 0.21 times and retail individual investors saw 0.03 times subscription.

Proceeds of the issue would be utilised for expansion of the company's network for providing video, data and telephony services and general corporate purpose.
The company is expected to mop-up around Rs 240 crore at the upper band through the IPO.
Through primary point cable business model, it offers digital and analog cable TV, broadband and VAS services in Odisha, Chhattisgarh, West Bengal and Andhra Pradesh.
This is the company's second attempt to hit the capital market. Ortel's earlier plan in 2013 to garner Rs 100 crore through the stock market did not take off.

Kotak Mahindra Capital Company Limited is the book running lead manager to the issue.