Ortel IPO closes, offer size reduced

Cable TV services provider Ortel Communications today closed its IPO by raising an estimated Rs 140 crore, even as the shares reserved for high net-worth investors and retail investors remained under subscribed.
The IPO received bids for 71,23,125 shares against an offer of 94,42,575 scrips, reflecting a subscription of 0.75 times, data available with the National Stock Exchange showed.
"The Ortel IPO has been successfully closed today. Ortel has successfully raised its entire primary capital requirement as stated in the IPO Red Herring Prospectus, along with providing partial exit to New Silk Route (NSR)," Kotak Mahindra Capital Company, the book running lead manager to the issue, said in a statement.

"The QIB (Qualified Institutional Buyer) segment has been fully subscribed with participation from Mutual Funds and Insurance companies. The net under subscription in the HNI and Retail segments will reduce the offer for sale component by NSR," it added.
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 includes anchor portion of 2,557,425 equity shares.

The IPO is priced between Rs 181 and Rs 200/share. The IPO opened on March 3 and closed today.
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.

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.
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.