Birlaa.com

IT People FPO has been officially withdrawn. Its been a terrible misfortune for IT People. The IPO got fully subscribed and at one point of time was subscribed by about 1.15 times. However, in the last few hours a lot of institutional investors seem to have withdrawn their bids and the FPO was finally subscribed only 0.97 times (agonisingly short by 0.03 times). If they had know well before the close that the IPO was undersubscribed they could have revised their price band and increased the subscription period. However since the bids were withdrawn at the last moment they seem to have lost the opportunity to act. Its really sad from the company’s perspective. Terrible loss of face for the company as well as loss of money in advertsing and marketing the FPO. However, its good for investors since the IPO, if it was fully subscribed would have most likely listed below the IPO issue price and hence would have given listing losses to IPO investors.