Wockhardt Hospitals, late on Thursday, 7 February 2008 decided to withdraw its initial public offer (IPO) due to poor investor response. The IPO was subscribed by just 0.20 times on 7 February 2008, the final day of its issue. The issue received bids for 49.03 lakh shares as against 2.50 crore shares on offer.

The qualified institutional buyers' (QIB) portion was subscribed 0.064 times and the non institutional investors portion was subscribed 0.048 times. The retail portion and portion reserved for employee were subscribed 0.519 and 0.012 times respectively.

As per law, the company has to refund investors their money if 90% of the total issue is not subscribed. Wockhardt Hospitals will accordingly refund the amount to investors in 15 days.

The company had previously extended its initial public offer (IPO) closing date to Thursday, 7 February 2008 from the earlier Tuesday, 5 February 2008, due to poor response to the issue. The issue opened for subscription on Friday, 1 February 2008.

The company had lowered the price band of its initial public offering to Rs 225-260 per equity share. The revision was done in the light of current volatile market conditions. The company had earlier fixed the price band for its IPO at between Rs 280-310 per equity share.

The issue proceeds were to be used for setting up 17 new hospitals by 2010 and also repay debt.

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