Puravankara cuts IPO price band From 500-525 to 400-450

Real estate company Puravankara Projects has extended its initial public offering subscription period from August 3 to August 8 and reduced its price band from Rs 500- 525 to Rs 400-450 a share. The offer opened on July 31.

“The decision was taken in view of the volatility of the global and Indian markets and, with due respect to investor sentiment, who expressed a deep desire to invest in our company but also pointed out the market condition,” said Mr Ravi Ramu, Director, Puravankara. Apparently, poor response has forced the company to extend the IPO. Figures put out by the NSE as of 5 p.m. on Friday said the issue was subscribed 0.36 times (on both BSE and NSE). Total bids received were 76,26,010 and those at cut-off price were 30,33,200. This is not the first time that IPOs had to cut price and extend the offer period. When the market was witnessing adverse conditions in May-June 2006, issues such as Air Deccan, Abhishek Mills, Bluplast and Vigneshwara Exports were also forced to resort to similar measures.