"Yes we don't want to do it in this volatile market. It has been put on hold," according to a senior company official.

The company was looking to raise Rs 1,200 crore through the placement and had given Enam Securities, JP Morgan, Kotak Securities and CLSAAsia-Pacific Markets the mandate.

However, at Rs 340 per share, the floor price set was way too high for investors, particularly considering the stock has ruled closer to Rs 300 over the past week or so.

An analyst from a Mumbai-based brokerage, which had received the sales mandate, said, "It (the QIP) is not happening as of now because investor appetite is just not there. The average price was coming to Rs 340 per share at which they didn't want to enter; at Rs 307 per share there was still some chance of finding buyers."

The QIP floor price was fixed at Rs 340 per share in accordance with the Securities and Exchange Board of India rule that it must be the higher of the average price in the last six months or in the last two weeks. The six-month average prevailed, weighing in at Rs 340 as compared with Rs 307 in the last two weeks.

HDIL, however, has raised Rs 1,150 crore through non-convertible debentures of 5-year tenure.