SVEC Constructions withdraws IPO

There is one more sufferer of this weak market conditions after Emaar MGF, Wockhardt Hospitals and Globus Spirtis withdrawal of IPOs. SVEC Constructions also has withdrawn its IPO due to weak response.

To get the IPO subscribed, the company had lowered the price band to Rs 80-90 from Rs 85-95 and extended the closing date to February 13 from February 8 following the same path of Wockhardt Hospitals and Emaar MGF but that did not support the issue. Yesterday's weak listing of Reliance Power also one of the reasons.

SVEC Constructions was entered capital market with an initial public offering of 40 lakh equity shares of Rs 10 each on February 4. The issue got subscribed just 0.24 times. The company was planned to raise between Rs 32 crore-Rs 36 crore on

The company proposed to deploy funds for the purchase of capital equipment worth Rs 15.32 crore and for meeting the long-term working capital requirements estimated at Rs 23.86 crore.

The company’s order book position as on November 30, 2008 stands at Rs 521.91 crore.

The book running lead managers to the issue were Karvy Investor Services Ltd and Centrum Capital Ltd.