Mumbai: The stock market turmoil had affected a lot the public offerings. Gemini Engi-Fab has withdrawn its proposed public issue a day before its scheduled opening, due to lukewarm response from institutional investors, according to the brokers familiar with the development.
The company was planning to rise around Rs 44 crore through the issue. Along with bearish market conditions, high valuation may have played a role in shaping investor apathy, they said.
At the proposed price band of Rs 75-80, Gemini was being valued at 10-11 times estimated FY09 earnings per share on its post-offer equity base. Market watchers said this appeared little expensive, considering that quite a few pure-play capital goods and engineering companies were at present available in the secondary market at lower valuations.
The other company which is tapping the capital market is Edserv Softsystems, with the price band fixed at Rs 55 to Rs 60 per share. The issue will open for subscription on February 5 and will close on February 9. The company is looking to raise around Rs 20 crore through the issue. Both the issues have received poor gradings from rating agency CARE.
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