StanChart-Backed Waste Manager Delays $200 Million IPOSharang Limaye
Ramky Enviro Engineers Ltd., an Indian waste management company backed by Standard Chartered Plc’s private equity unit, delayed a planned $200 million initial public offering because of tepid market conditions.
“We have to take into account the market sentiment,” Chairman Ayodhya Rami Reddy said in an interview. “We are not sure the time is quite right for a mid-cap offering.”
The BSE Mid-cap Index has slumped 11 percent this year, according to data compiled by Bloomberg. The Hyderabad-based company had planned to invest 5 billion rupees ($92 million) from the proceeds of the share sale to set up a 48 megawatt “waste-to-energy” plant in Hyderabad.
Ramky Enviro had hired Kotak Mahindra Bank Ltd., JPMorgan Chase & Co., Bank of America, IDFC Capital Ltd., SBI Capital Markets Ltd. and Edelweiss Capital Ltd, to manage the sale.
The shares of group company Ramky Infrastructure Ltd., which went public in October 2010, have slumped 85 percent from the offer price of 450 rupees, according to data compiled by Bloomberg.