India's Emaar MGF Land Ltd, which aims to raise $1.6 billion from its initial public offering, received bids for 16 percent of the issue, mostly at the lower end of the price band, as investors remain edgy in a volatile market.
The company, an Indian joint venture of Dubai's Emaar Properties reduced the offer price on the eve of the IPO because of changed market conditions, which also forced Wockhardt Hospitals Ltd to scale down its IPO.
In contrast, Reliance Power's $3 billion issue was lapped up by investors in one minute in the middle of January, and the company said on Friday it had begun refunding $25.4 billion in excess application money.
Emaar MGF's IPO price range, initially set at $15.50 to $17.50 per share was reduced to $13.7 to $16, cutting the maximum it can raise to $1.64 billion from $1.8 billion.
If the IPO is priced at the lower end, Emaar MGF would raise $1.4 billion.
Data from the the National Stock Exchange showed the IPO received bids for 16.49 million shares on its first day, of the total offering size of 102.57 million.
After a five-year bull run in the Indian market and a record $8.3 billion raised from IPOs in 2007, Indian companies had a pipeline to raise up to $15.8 billion from new listings this year, according to Thomson Financial data.
But investor sentiment has wilted as the Bombay Stock Exchange's main index lost 14 per cent from its record high of 21,206.77 points hit on January 10.
Wockhardt Hospitals Ltd., the first Indian company to cut the size of its IPO, has not received bids for even 1 percent of the shares on offer on the second day of its IPO.
The benchmark index of the Bombay Stock Exchange rose 47.1 per cent in 2007, recording its strongest growth in four years. It rose nearly 73 per cent in 2003, 13 per cent in 2004, 42 per cent in 2005 and 46.7 per cent in 2006. (Reuters)
Emaar MGF India IPO makes slow start