Sai Silks (Kalamandir) Limited which had tapped the capital markets with its issueto raise Rs 89 crsat a price band of Rs 70-75failed to be fully subscribed and has been withdrawn. The issue had opened on Monday the 11th of February and closed on Friday the 13th of February.

The company had offered a safety net of upto 1,000 shares for original retail investors for a period of upto six months from the date of credit of shares into the demat account. The offering of safety net was a huge success and the retail portion of the issue which had 55% of the issue size reserved for them was handsomely oversubscribed. The retail portion received bids for 91.45 lac shares against the issue size of 69.92 lac shares and was subscribed 1.31 times. The issue failed to garner the overall subscription because of inadequate response from QIB’s and HNI’s.

Though technically the issue was subscribed having received bids for 90% or more of the issue size, the promoters advised by the lead managers chose to withdraw the issue in the greater interest of the investors.

The details of the subscription level in various categories are given below: –

The issue has been withdrawn on not being able to raise the required subscription overall. The key takeaway from the issue is the fact that the safety net which was offered to retail investors and has gone down well with them. The fact that of the total bids received for the issue of 110.75 lacs, 82.56% or 91.45 lac shares was bid by retail investors augurs well for the success of the scheme. Going forward one is likely to see many more issues being launched which would have the safety net as a key part of the issue.