Fatpipe Networks India IPO: Withdraws its IPO

by khalid on 17/06/2010 · 0 comments

The company had extended its public issue till 14th June 2010 from the previous closing date of 9th June 2010. The IPO had opened on 7th June 2010. The company had also revised price band of the IPO to Rs 80-85 per share from the previous price band of Rs 82-85.

Even after revising price band and date, the issue was subscribed just 0.88 times. It could not cross even the minimum subscription level of 0.9 times. So the company has withdrawn its Rs 49 crore IPO.

Retail investors was just not intrested to subscribe the issue as Rating Agency Brickwork Ratings India Pvt. Ltd has assigned an IPO Grade 2 to this IPO. This means the company has below average fundamentals. Non-institutional investors’ reserved portion got subscribed 2.12 times followed by qualified institutional which subscribed 0.94 times and retail investors was subscribed 0.25 times only.

The company is the inventor and multiple patents holder of technology that provides the highest levels of WAN optimization, reliability, security, and bandwidth management. Company holds 7 patents on a technology called “Router-Clustering,” which enables customers to obtain highly redundant and fast Internet/WAN access.

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