EdServ Softsystems, an e-learning company, which has tapped the capital market to raise up to Rs 24 crore through an initial public offer (IPO), has not been able to get the support of investors. The IPO has received mere 11,600 bids compared to the issue size of 39.73 lakh shares that are on offer.
The IPO, which opened on February 5, is slated to close today. In view of the poor response, the company will have to choose between the two options – either to extend the issue or to suspend it.
Most of you readers maybe new here, I would like to tell you that there was a time in the Indian Capital markets when IPOs were priced at par – Rs 10 Face Value share were issued at the same price. A premium of Rs 40 could be commanded only by Big Brands and Companies 🙂