KPR Mill fails to click on trading debut

KPR Mill fails to click on trading debut
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First Published: Wed, Aug 29 2007. 12 10 AM IST
Updated: Wed, Aug 29 2007. 12 10 AM IST
Mumbai: Coimbatore-based cloth maker KPR Mill Ltd, part owned by private equity firms, fell 23% on its trading debut as investors shunned stocks of textile makers. The shares closed at Rs173.50 on the Bombay Stock Exchange on Tuesday. KPR raised Rs133 crore by selling shares at Rs225 a share, the bottom of the range.
Mounting losses among US mortgage lenders have roiled global capital markets, forcing firms—including Puravankara Projects Ltd—to cut initial public offer (IPO) prices to attract investors. This may curb stock sales by Indian firms, which have raised a record $17 billion (Rs69,870 crore) this year, Bloomberg data show.
“There will be slowing of IPOs, and whoever comes out with an IPO will price it reasonably given the receding appetite for speculation,” said M.A.A. Annamalai, director at the Chennai-based Akshaya & Co., which has been distributing IPOs for nearly 20 years.
Gains in the rupee are eroding profits for textile makers when they repatriate earnings from overseas. Jagjanani Textiles Ltd and Abhishek Mills Ltd are two of the three worst performers among firms selling shares for the first time in India this year. Kotak Mahindra Capital Co. Ltd and ICICI Securities Ltd managed the share sale. Private equity firms Ares Investments Ltd, Brandot Investments Ltd and Argonaut Ventures together hold 13.56%, according to the company’s offer document. bloomberg
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First Published: Wed, Aug 29 2007. 12 10 AM IST