The Indian waste management company Ramky Enviro Engineers Ltd has suspended a scheduled US$200 million initial public offer of its shares. The company is backed by Standard Chartered Plc decided on the suspension citing tepid market conditions.
According to Ramky Chairman Ayodhya Rami Reddy, through an interview, "We have to take into account the market sentiment. We are not sure the time is quite right for a mid-cap offering."
The BSE Mid Cap Index has dropped 11% in 2013 according to Bloomberg obtained data. Ramky Enviro had planned to invest 5 billion rupees or US$92 million from the proceeds of the IPO to build a 48 megawatt 'waste to energy' plant located right in Hyderabad.
To manage the IPO, Ramky Enviro had engaged Kotak Mahindra Bank Ltd, JP Morgan Chase & Co, Bank of America, SBI Capital Markets, IDFC Capital Ltd and Edelweiss Capital Ltd.
In previous offers, the group company Ramky Infrastructure IPO shares have dropped 85% from its offer of 450 rupees per share in 2010.
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