Telecom networking products company Tejas Networks received cold response for its initial public offering (IPO) as it was subscribed just 1.9 times. The wealthy investor portion of the issue remained undersubscribed at 50 per cent. The institutional and retail investor quota garnered 2.2 times and three times subscription respectively.
Market players said the lukewarm response from high net worth investors (HNIs) could mean the investors were not excepting good listing day returns.
Tejas Networks’ IPO comprised of fresh equity issuance of Rs 450 crore and offer sale by existing shareholders of Rs 327 crore. The OFS portion was around 14 per cent of the post issue paid up capital.
Part of the fresh issue proceeds (Rs 303 crore) will be used for working capital and the remaining will be deployed for capital expenditure towards payment of salaries and wages.
Tejas will be the first company in optical networking equipment to list on domestic bourses. At the top end of the price band, the company was valued at Rs 2,300…