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Ortel Communications IPO subscribed 30% on day two

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Capital Market
Last Updated : Mar 04 2015 | 6:47 PM IST

Receives bids for 28.40 lakh shares

Ortel Communications' initial public offer (IPO) received bids for 28.40 lakh shares on the second day of bidding for the IPO today, 4 March 2015 as per data at 17:00 IST on NSE. The IPO was subscribed 30%. The issue opened for subscription yesterday, 3 March 2015 and will close tomorrow, 5 March 2015. The price band for the IPO is fixed between Rs 181 to Rs 200 per share.

Ortel Communications on 2 March 2015 raised Rs 46.28 crore through pre-initial public offer (IPO) placement of 25.57 lakh equity shares to two anchor investors. The shares were allocated at lower end of the IPO price band of Rs 181 to Rs 200 per share.

Ortel Communications allotted 6 lakh shares (23.46% of the total anchor investor portion) to Axis Mutual Fund (Midcap Fund scheme) and 3 lakh shares (11.73% of the total anchor investor portion) to Axis Mutual Fund (Small Cap Fund scheme). Ortel Communications allotted 16.57 lakh shares (64.81% of the total anchor investor portion) to ICICI Prudential Life Insurance Company.

The company plans to raise Rs 217 crore to Rs 240 crore by issuing around 1.2 crore equity shares (of which 60 lakh equity shares are fresh issue and 60 lakh is offer for sales by NSR - PE Mauritius LLC). Out of the total money raised, half will go to NSR - PE Mauritius LLC for its offer for sale of equity shares, Rs 67.98 crore will be used for expansion of the network for providing videos, data and telephony services, Rs 16.74 crore will be used for capital expenditure on development of the digital cable services, Rs 10.51 crore will be used for capital expenditure on development of the broadband services and rest for general corporate purpose.

Ortel Communications reported net loss of Rs 12.06 crore in the year ended 31 March 2014 (FY 2014), lower than net loss of Rs 25.10 crore in the year ended 31 March 2013 (FY 2013). Net sales rose 7.26% to Rs 128.50 crore in FY 2014 over FY 2013.

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Ortel Communications is a regional cable television and high speed broadband services provider focused on Odisha, Chhattisgarh, Andhra Pradesh and West Bengal.

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First Published: Mar 04 2015 | 5:39 PM IST

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