A2Z Maintenance IPO subscribed 0.96 times on final day

A2Z Maintenance's initial public offer failed to garner enough investor interest to get fully subscribed on the final day of the issue today, attracting bids for just 96 per cent of the equities on offer.

The stake sale, through which the company could mop up as much as Rs 675 crore, attracted bids for 1.7 crore shares, as against 1.8 crore equities on offer, as per data available on the National Stock Exchange (NSE) till 1715 hours.

The IPO saw total demand worth Rs 716 crore on the third and final day of the issue.

Earlier, NSE data showed that the company's public offer was oversubscribed 1.12 times till 1400 hours.

Marketmen attributed the poor response to the offer to the weak market sentiment and high price of the issue.

"In this market, we don't expect listing gain on the issue as the stock is available at very high valuation," Unicon Wealth Research said in a note.

A2Z had fixed the price band for the IPO at Rs 400-410 per share.

The company plans to utilise the funds raised through the IPO for expansion of its solid waste management plants and setting up new green energy plants.

IDFC Capital, DSP Merrill Lynch, Enam Securities, ICICI Securities and SBI Capital Markets are the book running lead managers to the issue.

Meanwhile, another public stake sale by Ravi Kumar Distilleries -- which is engaged in the business of manufacturing and trade of Indian-made foreign liquor -- was subscribed 2.16 times on the final day of issue today.