NCML withdraws IPO on poor response from retail investors

The initial public offer (IPO) of edible oil firm NCML Industries has been withdrawn after poor response from retail investors.

"Book running lead manager (BRLM) to the NCML Industries Limited issue has informed the exchange that the issue has been withdrawn with immediate effect," as per a notice on the NSE.

The issue, which had opened for subscription on December 29 for sale of 60 lakh equity shares, received bids for over 26.88 lakh shares till yesterday. The issue was slated for a closure today.

The qualified institutional buyers (QIBs) portion was subscribed 1 times and non institutional investors category received 0.91 times subscription, as per yesterday's data on the NSE.

Portion reserved for retail investors garnered 0.16 times subscription.

The public offer of NCML Industries failed to catch investors' fancy despite extension of the issue closure date till today and lowering of the price band from Rs 100-120 to Rs 80-90.

The offer was earlier scheduled to be closed on January 2, 2015.

The company is into the business of importing, manufacturing and marketing of edible oils in India.

The equity shares were proposed to be listed on BSE and National Stock Exchange (NSE).

Corporate Strategic Allianz Limited was the book running lead manager to the issue.