Mumbai: Castings and component manufacturing company Nelcast on 27 June dipped 7% in its debut trade on the bourses and settled below its offer price.
The company got listed with 15% premium on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) but during the day the scrip parted with its gains and closed below its issue price.
The company saw a high of Rs284.70, a low of Rs203.10 on the Bombay Stock Exchange and over 60.95 lakh shares exchanged hands.
Similar trend was witnessed on the NSE, where the scrip touched a high of Rs274, a low of Rs204 and over 67.11 lakh shares got traded during the day.
The company entered the bourses with 1,74,00,240 equity shares of Rs 10 each with an issue price of Rs219 per share.
The initial public offer of Nelcast got oversubscribed seven times. The IPO received 3.20 crore bids for its offer of 43.50 lakh equity shares.
The offer received decent response from qualified institutional buyers, including foreign institutional investors, mutual funds among others with the portion reserved for them getting subscribed over 11 times.
The proceeds of the issue would be utilised to fund a new manufacturing unit at Gundur in Andhra Pradesh. With the new unit the company’s capacity would go up to 150,000 tonnes.