The company claims that it wants to relaunch the issue at an ``investor-friendly'' price, clearly implying that the price would be lower than the last floor price of Rs 225 per share. The relaunch decision coincides with the opening of yet another IPO from the entertainment sector.

Subhash Ghai's Mukta Arts book-building portion opened on Monday.Through its maiden public offering, Creative Eye had offered 25,02,400 shares of Rs 10 each at a floor price of Rs 225. However, after the closure of the book-building portion, according to the company, it has decided to respect the investor sentiment and after consulting the book-running lead managers, has decided to relaunch the issue. HSBC Securities & Capital Markets (India) was the book-running lead manager to the issue.

According to Creative Eye managing director Dhiraj Kumar, though the company rests on strong fundamentals, ``We thought that it would not be a very healthy sign in case the shares list at a discount to the offer price. So, after consulting the merchant bankers and also a number of big investors those who had bid in the issue, we have decided to re-launch the issue.''

According to the company release, the decision has been arrived at after looking into the composition of the book and the feedback received from both institutional and non-institutional investors. According to Kumar, the institutional investors who had bid in the book-building part, have all welcomed the decision. A total of 18,76,800 shares were offered through the book-building route. With the latest move, the fixed price portion, which was slated to open on July 20, stands cancelled.

According to merchant bankers, re-launch of the issue is permissible under the present law, provided the retail fixed price portion is not open. But the company has to again file with Sebi a fresh prospectus and the next round of book-building could take anywhere between 30 to 60 days or more to start, say merchant bankers.