Odisha-based cable and broadband provider Ortel’s Initial Public Offering (IPO), which ended on Thursday, failed to gain full subscription, reports the Business Standard. Of the 12-million share issued, about 9.68 million, or around 81% of what was offered, was subscribed to.

Ortel had previously mentioned it was looking to raise Rs 217.2- 240 crore through its initial public offering (IPO) by issuing up to 12 million equity shares of face value Rs 10 each. The price band was fixed at Rs 181 to Rs 200 per equity share. The issue comprised of fresh issue of six million shares to the public and an offer for sale of up to six million shares by private equity firm New Silk Route (NSR).

The fresh shares issued for the IPO were fully subscribed to, while the shares offered by NRS remained undersubscribed. According to the report, only 61% of NSR’s shares were sold.  NSR which held 33.8% of the total shares in Ortel, was looking to reduce its hold to 7% in the company. It had previously bought shares in Ortel at approximately Rs 103 per share in FY09.

Overall, the IPO received bids for 71,23,125 shares against an offer of 94,42,575 scrips, reflecting a subscription of 0.75 times. The qualified institutional buyer (QIB) quota for the IPO was fully subscribed however, the issue had 15% reservation for the wealthy and 10% for retail investors, both of which remained undersubscribed.

Previously, Ortel had signed up ICICI Prudential Insurance and Axis Mutual Fund as anchor investors for the IPO, which combined committed to pick 2.55 million shares for Rs 46.2 crores. Axis had agreed to buying 0.9 million shares for Rs 16.3 crores, while ICICI accounted for the remaining amount. The shares they had agreed to buy were at the lower end of the price band of Rs 181-200 a share.

Ortel is a regional cable and broadband provider focused in the states of Odisha, Chhattisgarh, West Bengal and Andhra Pradesh. It currently offers services in 48 towns and certain adjacent semi-urban and rural areas with over 21, 600 kms of cables and supported by 34 analog-heads and five digital head-ends.