Samvardhana withdraws Rs 1,665-cr IPO

Weak market conditions forced auto parts maker Samvardhana Motherson Finance Ltd (SMFL) to defer its Rs 1,665 crore initial share sale which remained under-subscribed on the last day on Friday.

"In light of the weak equity market conditions and volatile currency movements, the company on the advice of the book running lead managers has decided to defer its proposed Initial Public Offering (IPO )," Samvardhana said in a statement.

Before the issue opened for the public bidding, the company had already secured Rs 222 crore through allotment of shares to four anchor investors, including the Government of Singapore.

It had allocated over 1.93 crore equity shares to the anchor investors at a price of Rs 115 per share, raising Rs 222.03 crore.

SMFL had set a price band of Rs 113-118 for the initial share offer which could have mopped up Rs 1,665 crore. This IPO would have been the largest private sector offer after JSW Energy mopped up about Rs 2,700 crore in December 2009.