Loha Ispat lowers IPO price, extends date

First IPO of the calendar year is struggling to garner full subscription

Steel producer Loha Ispat today lowered the price band for its initial public offering (IPO) and extended the issue closing date, as it struggles to garner full subscription.

The company has announced a new price band of between Rs 74 and Rs 77 per share, down from the earlier range of Rs 77 and Rs 80 apiece.

The around Rs 200 crore-IPO, which was supposed to close today, will now remain open till March 25.

As on Wednesday, Loha Ispat's IPO had received just 20% subscription.

The company is issuing 26.7 million shares in the IPO to raise capital to meet its working capital requirements.
 

Loha Ispat will raise around Rs 198 crore at the lower end of the price band and Rs 205 crore at the upper end.

Aryaman Financial Services is the lead manager for the IPO.