Dinesh Engineers withdraws IPO on weak equity market conditions
Passive communication infrastructure provider Dinesh Engineers has withdrawn its initial public offering (IPO) on October 3 due to weak equity market conditions.
The public issue received a lukewarm response from investors, with a mere 17 percent subscription of the final day.
“Book running lead manager to the Dinesh Engineers has informed the exchange that the entire application money shall be refunded forthwith and the IPO may be treated as withdrawn,” the exchange said.
The IPO has received bids for 16.51 lakh equity shares against 1 crore shares available for subscription, as per data available on exchanges.
The company opened its public offer on September 28, with a price band of Rs 183-185 per share.
The company expected to raise Rs 185 crore via the IPO, which would have been used for expansion of the business, fund expenditures towards general corporate purposes and to meet public issue expenses.
Dinesh Engineers is focused on providing passive communication infrastructure services mainly to the telecom operators and internet service providers (ISPs).
Hem Securities was the book running lead manager to the issue and the registrar to the issue was Link Intime India.
The equity market has been under pressure from the start of September, with the Sensex falling more than 3,000 points from its record high touched on August 28, 2018.