The report comes at a time when the city-based real estate developer’s IPO has struggled for response from investors. The IPO was subscribed merely 35 per cent on the second day of the bidding process. It closes for subscription on Friday.
ETMarkets could not independently verify the report.
The lack of response from retail and high net-worth individuals has been particularly alarming for the IPO’s investment bankers given that both the segments have been the driving force behind the success of many of the recent public offers.
The non-institutional investors’ portion, usually for HNIs, was subscribed merely 19 per cent by the end of the second day.
“We have some investment concerns for the IPO, with the firm having a net debt of Rs 16,700 crore as of December 2020. Any downturn in industry may affect the company significantly,” Yash Gupta, Equity Research Associate, Angel Broking said in a pre-IPO note.
