Mumbai: Construction firm RPP Infra Projects made a flat start on its debut on Monday, before gaining over 7% at both BSE and NSE in the early trade.
RPP Infra share, which opened at the issue price of Rs75 on Bombay Stock Exchange jumped by 7.2% to quote at Rs80.40 in the early session.
The new comer witnessed a similar start on the National Stock Exchange, and soon climbed to Rs80.50, reflecting a premium of 7.3% over its issue price. On the volume front, over 1.24 crore shares of the company were traded on the bourses in the early trade.
RPP Infra has mopped up Rs48.75 crore initial public offer (IPO), which had a price band of Rs68-Rs 75 a share, and was issued at a price Rs75 a piece---the upper end of the price band.
The company plans to use the IPO proceeds to meet working capital and expenditure commitments. Furthermore, the company will set aside a portion of the funds raised through the IPO for investment in Built-Operate-and-Transfer (BOT) projects, set up through the Special Purpose Vehicles (SPVs) route.
RPP Infra’s IPO had received an overwhelming response from retail investors after market regulator Sebi hiked the upper investment limit for individuals to Rs2 lakh from Rs1 lakh earlier.
It was the first stake sale by an Indian corporate after the increase in investment limit for the retail investors.