The initial public offering of fitness chain Talwalkars Better Value Fitness is seeing a subdued investor response. The IPO that opened for subscription yesterday (Wednesday), has registered bids for less than three lakh shares till 11 am on Thursday. On the first day of the bidding, not a single bid was received in the institutional segment.
According to data available on the National Stock Exchange website, the issue has received bids for 0.30 million shares till 11am on Thursday, as against six million shares on offer in the price band of Rs 123 to Rs 128. On Wednesday, bids for a paltry 5,400 shares were received in the non-institutional segment, while retail investors submitted bids for 0.16 million shares on the first day.
India Infoline is the sole book running lead manager for the 100 per cent book building offer that closes on April 23.
The fitness chain intends to use the major portion of the issue proceeds to set up 27 health clubs during the current financial year. It also aims to increase its total membership to at least one lakh by end of this fiscal and increase the employee headcount by 3,000 on the back of the expansion.
The company currently has 58 health clubs across India with an average area of 5,000 sq ft. While 44 clubs are company-owned, six others operate under a joint venture with retail major Pantaloon and rest are franchises.
