Scott Garments with draws IPO

Latest Initial Public Offerings (IPO)

Scott Garments with draws IPO

Scott Garments has withdrawn its IPO due to poor response from public.

Scott Garments has initially kept its price band of Rs 130 to Rs 132 per share and the subscription date was up to 29-Apr-13. The IPO was subscribed up to 25%. Due to poor response, it has revised the price band to Rs 118 to Rs 120 with revised subscription dates up to 3-May-13.  Due to this extension company has received additional subscription of 2% only. So the total subscription was 27% only.

Our earlier review on Scott Garments IPO can be read at this link.

What could be the reasons for poor response of Scott Garments IPO?

Care has assigned this IPO grading as 3/5 which indicates average fundamentals.

Company has been consistently growing with 13% to 18% annualized growth. However margins are stabilized around 6% to 7%. Some of the reviewers felt it as low margins.

As indicated in our Scott Garments IPO review, the Price of IPO is very high.  

But I am still wondering that there were several SME IPO’s which have come up before Mar-2013 where, either the issue price was high or the performance was not consistent, but the IPO eas subscribed fully and they got listing gains i.e. investors got profits on the day when it got listed where the listed price was higher than the issue price. This is the second IPO after Sai Silks which has withdrawn its IPO due to poor response.

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Scott Garments with draws IPO


  • rony

    Dear suresh

    sir i have few company shares most of them underperformed can you tell me any upcoming IPO which is good for long tme

    • Hi Rony, Currently there are no IPO’s. As and when there is on, we would publish our analysis. You can subscribe to our e-mail subscription to know about latest articles.

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