Wockhardt Hospitals withdraws IPO due to poor response
How about these subscription figures – 0.006 times HNIs, 0.06 times QIBs, 0.3 times retail, and overall 0.2 times.
I have been investing in many IPOs since 2003 but never saw such subscription figures for any IPO. Wockhardt Hospitals IPO had to face this situation after extending the original IPO subscription duration to eight days. They had even reduced the IPO price on the opening day of IPO due to bad market conditions and foreseen poor response.
Wockhardt was talking about raising Rs 700 crore. As a matter of fact, if that capital is needed, where is it going to come from now? With what face is the Wockhardt management going to approach investors after having pulled out of the issue?
When is the Wockhardt Hospitals IPO Refund?
At present, Wockhardt Hospitals management is saying they are going to repay the money over 15-days. The eight days of IPO and these 15 extra days for refund, any investor would be at loss due to money stuck in these 22-23 days [that also if they refund in mentioned time frame] as they could have invested this money somewhere else in the equity market as anyways the equity market is providing lot of opportunities for retail investors.
So next time you better investigate the IPO very carefully and then only invest your hard earned money in there.
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