Can the IPO get canceled if the issue price is not met?
Suppose, the company wants to raise 100 Cr through IPO but the IPO is not subscribed 100%, it is only subscribed say 80%.
What happens in such a case? Will the IPO be canceled?
As per SEBI regulations, by the issue end date the IPO should be subscribed at least 90% for it to be successful. If it is less than 90% then the IPO will be canceled and blocked amount towards the IPO application will be released.
There isn’t any such example of late. However in 2020, Antony Waste Handling Cell had to cancel its IPO due to less subscription.
Btw, last year Adani Enterprises canceled its FPO despite getting full subscription due to Hindenberg saga.
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