Scotts Garments IPO Latest News Today

Scotts Garments IPO cancelled due to poor response from their investors. Scotts Garments IPO has received bids for 28,17,200 shares as against issue size of 1,05,06,954 shares on the last day of the bidding for the IPO. The IPO was finally subscribed 0.27 times. The bidding for the IPO began on 25 April 2013 and closed today on 3rd May for subscription.

Scotts Garments had revised the IPO closing date and price band due to muted investor response. The revised price band of the company is Rs 118-120 per share from Rs 130-132 per share set earlier. Scotts Garments IPO closed on May 3rd and earlier decided to close the issue on 29 April 2013.

Scotts Garments Ltd is engaged in the business of garment manufacturing. In addition to manufacture superior quality garments, company also provides additional facilities such as embroidery, printing, dyeing and washing. Scotts Garments export their readymade knitted and woven apparel to international clients including Denmark, Gander Mountain – USA, S Oliver, Frankfurt, C&A buying, Germany etc.

- By Dilip Davda

The first main line IPO of this fiscal which came with aggressive pricing and as it was cleared by SEBI a year before, it smoothly avoided the “Safety Net” tag and opened its issue on 25.04.13 in a hurried way before expiry of SEBI card limits.

Refer my previous analysis with a remark to buy at discount post listing, still stands valid, as despite muted response it reduced the price band to Rs. 118-120 which is still higher than the pre-IPO placement price and is also missing on “Safety Net”.

If one looks at subscription pattern, the issue got just 4200 shares bid on day one and it rose to 43500 no on day 2 i.e. 26.04.13. Due to Saturday and Sunday it was to close on Monday 29.04.13 and despite poor response, the merchant bankers and promoters announced closure of the IPO in pink financial and ultimately met disaster.

As per final tally as per BSE/NSE web, the issue got subscribed to the tune of 25% on Monday eve with QIB (36%), HNI (36%), Retail (6%) and Employees (12%). With such poor response, the merchant bankers and promoters have reduced the price band to Rs. 118-120 and is now extended till 03.05.13. But considering its 95% export earnings with over 76% coming from European countries that are facing crisis, it is not worth even at this reduced pricing in absence of “Safety Net”. It reported higher net with window dressing with one time profit from sale of investment just to boost its IPO pricing.

Scotts Garments Ltd is entering in the capital markets with an initial public offering, IPO of 10,506,954 Equity Shares of Rs 10 each. The price band for the issue has been fixed at Rs 130/- at lower level and Rs 132/- at upper level.

Scotts Garments Ltd is engaged in the business of garment manufacturing. In addition to manufacture superior quality garments, company also provide additional facilities such as embroidery, printing, dyeing and washing. Scotts Garments export their readymade knitted and woven apparel to international clients including Denmark, Best Seller, Gander Mountain, S.Oliver, C&A, Smith and Brooks, Metro International.

The issue opens on Apr 25, 2013 and closes for subscription on Apr 29, 2013. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).