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Despite demand Tuesday, June 11, for more than twice the shares in the initial public offering by i-flex Solutions Ltd., investment banking sources still predict pricing at the lowest end of the range.
The considerable drag on the price of i-flex, the Indian banking and financial software unit of Citigroup Inc., was linked to tension between India and Pakistan and bad press from an irate customer. Last week, India's Saraswat Bank, an i-flex customer, took out an advertisement in a local newspaper accusing the Citigroup unit of not delivering on promises of its main product, Flexcube, while putting it into bank branches. I-flex has denied the charges.
The IPO price hovers at Rs530 ($10.64) per share, sources said. The i-flex IPO consists of 3.96 million shares. Of these, 3.36 million shares would be fresh equity and the remainder an offer by existing shareholders.