Ortel Communications IPO subscribed 0.15 times on first day

Mumbai: The initial public offer (IPO) of regional cable TV services provider Ortel Communications was subscribed 0.15 times on the first day of the issue on Tuesday.

add_main_imageThe IPO received bids for 1,392,675 shares against 9,442,575 shares on offer, reflecting a subscription of 0.15 times, data available with the National Stock Exchange (NSE) showed. Ortel entered the capital market with a public issue of up to 12 million equity shares of face value of 10 each. The public issue of up to 12,000,000 equity shares include anchor portion of 2,557,425 equity shares. The issue is priced between 181 and 200. The issue will close on 5 March. Qualified institutional buyers (QIBs) portion was subscribed 0.21 times and retail individual investors saw 0.03 times subscription. 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. The company is expected to mop-up around 240 crore at the upper band through the IPO. 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.

This is the company’s second attempt to hit the capital market. Ortel’s earlier plan in 2013 to garner 100 crore through the stock market did not take off. Kotak Mahindra Capital Co. Ltd is the book running lead manager to the issue.NextMAds