Thinksoft Global extends IPO date

Thinksoft Global Services, a small information technology (IT) firm, today extended the bidding period of its initial public offer (IPO) and revised its price band after it got a lukewarm response from investors.

The IPO subscription period has been extended by four working days till October 1. The price band of the issue has been revised to Rs 115 at the lower end and Rs 125 at the upper end per equity share. Earlier, the price band of the issue had been fixed at Rs 120 to Rs 130 per share.

The IPO was subscribed just 62 per cent till Friday, when it was supposed to close, according to latest data available with the National Stock Exchange. The company has entered the capital market with an issue size of 3.6 million equity shares and expects to raise up to Rs 47.39 crore.

Thinksoft is the first IPO this year which had to extend its issue price. In 2008, some of the biggest IPOs — including Emaar MGF, which had planed to raise over Rs 7,000 crore, and Wockhardt Hospitals — had to revise their price bands and, subsequently, drop IPO plans after investors showed little interest.

“This year, investor sentiment has been hurt by the lackluster listing of NHPC and Adani Power IPOs. Moreover, not many people want to put their money in such smaller IPOs, which do not have strong brand names. However, all eyes are now set on the listing of mega public sector firm Oil India. If the share registers significant listing gains, the primary markets could revive,” a stock broker said.

The share price of NHPC fell below its IPO price on the second day of its listing and has still not managed to register any strong move above the issue price. Similar is the case with Adani Power’s share.