Hit by a very poor response to its initial public offer, health care services provider Wockhardt Hospitals is understood to have withdrawn the issue on Thursday. In the recent history, it is the first major public issue to have been shelved, reflecting an uncertainty over the IPO market that had yesterday forced Emaar MGF to extend its bidding period, while revising downward for the second time its offer price.

According to latest data at the stock exchanges, the IPO received bids only for 19.5 per cent of the total 2.5 crore (25 million) shares on offer. The company, sources said, is withdrawing the IPO.

Earlier, the company had revised downwards its price band and extended the bidding period by two days amid volatile market conditions and lukewarm response from investors. The company had cut its price band to Rs 225-260 per equity share from Rs 280-310 earlier.

The company has made an offer of over 2.50 crore shares in the public issue. The firm was planning to raise about Rs 650 crore (Rs 6.5 billion) through the IPO to help repay debt and fund its expansion plans.