Plastene India IPO withdrawn due to poor response

The initial public offer (IPO) of Plastene India was withdrawn on Tuesday due to poor investor response, amid weak secondary market conditions. The Rs 78-crore offering is the second IPO in May and the third in 2012 that failed to sail through. Earlier this month, Samvardhana Motherson Finance had to pull out of its Rs 1,665-crore IPO, the largest since October 2010, due to poor response. Goodwill Hospital, too, had called off its IPO. Plastene India, a manufacturer of bags and woven sacks, received less than 30 per cent bids for the 9.25 million shares on offer. The company received hardly any bids under the institutional investor and the retail category, while the wealthy investor category got subscribed 1.76 times, according to data on the National Stock Exchange.