Mumbai: Shares of wire manufacturer Bharat Wire Ropes Ltd closed marginally higher from its issue price on Friday, its first day as a listed company.

The stock opened at 47.35 and touched a high and a low of 47.5 and 45, respectively. The stock closed at 45.4 on the BSE, up 0.89% from its offer price. India’s benchmark Sensex index fell 72.22 points, or 0.28%, to 25,269.64.

The company raised 70 crore by offering 17.5 million shares to investors. It priced the offer at the upper end of its price band of 40-45 per equity share.

The initial public offering (IPO) which closed on 22 March was subscribed 1.21 times, according to data available on the stock exchanges.

The company will use IPO proceeds for setting up a manufacturing plant at Chalisgaon in Maharashtra and for other general corporate purposes. The issue is being managed by Intensive Fiscal Services and BOB Capital Markets.

For the first eight months of the current fiscal year, Bharat Wire has posted a profit of 1.09 crore on total revenue of 43.74 crore. In FY15, the company posted a net profit of 1.98 crore, up 31.4% from a year ago while total revenue fell 6.77% to 76.72 crore. As of November 2015, the company has total debt of 98.99 crore.

Bharat Wire Ropes has been making wire and wire ropes since 1986. Its products are used in many fields, including engineering, fishing, shipping, mining, defence and railways.

So far this year, four firms—Precision Camshafts Ltd, Quick Heal Technologies Ltd, TeamLease Services Ltd and HealthCare Global Enterprises Ltd, have listed on the stock exchange. Of these, only TeamLease Services is currently trading above its offer price.

“Currently, out of the four IPOs that were launched in 2016, three were priced at higher valuation given that they are trading below its issue price. In addition, the funds raised were used to retire debt with minimum asset creation. Going forward, companies coming up with IPOs will surge but whether the valuations justify their issue price will be a key concern", said Amit Singh, vice-president, institutional equities, at Choice Broking.