Air Deccan IPO ends on a feeble note

Even after extending the deadline by three days and paring the price, the initial public offering (IPO) of Deccan Aviation closed today with marginally better subscription than what it had received on the original closing day.

The issue was subscribed 1.23 times at close today compared with 1.06 times on Tuesday. The issue managed bids for 3.02 crore shares.

Total bids received at cut-off price were Rs 1.15 crore. The issue has put 2.45 crore shares up for sale.

Deccan Aviation, which runs low-cost carrier Air Deccan, on Tuesday extended the deadline by three days and slashed the lower limit of the price band by Rs 4 to Rs 147. The original price band was fixed at Rs 150-175.

Sources close to the merchant bankers to the issue attributed the poor response to the continued nervousness prevailing in the market.

"The market continued to be choppy till yesterday. Therefore, the extension of deadline did not have much impact on the investors," they said.

They, however, added that all categories of the issue were fully subscribed. More than 60,000 applications were submitted for the issue which meant the participation was widespread.