Garden Reach shares fall nearly 12% on stock market debut
Garden Reach shares opened 11.86% lower on the BSE at Rs 104 a piece, compared to the issue price of Rs 118, which was the upper end of the IPO’s price band of Rs 114-118 per share
Mumbai: Shares of Garden Reach Shipbuilders and Engineers Ltd debuted at around 12% discount to its issue price after its Rs 345-crore initial public offering (IPO) of the public sector undertaking witnessed an overall subscription of 1.02 times last week. Garden Reach shares opened 11.86% lower on the BSE at Rs 104 a piece, compared to the issue price of Rs 118, which was the upper end of the IPO’s price band of Rs 114-118 per share. At 10.17am, the stock was up 2.69% at Rs 106.80 per share on BSE, while the Sensex traded 0.88% higher at 34,601.38. Earlier in the day, the shares touched a high of Rs 108.65 and a low of Rs 102, respectively.
Garden Reach had extended its initial public offer to 1 October from 26 September. The price band was also cut to ₹114 to ₹118 per equity share, from ₹115 to ₹118 earlier. The issue was subscribed only 67% till the end of 26 September.
On Monday, Aavas Financiers Ltd made a weak debut today, with its shares declining 5.8% on the debut day.
These two IPOs were launched in a week that saw a meltdown in stocks of non-banking finance companies. The market sentiment has taken a beating and has eroded 5.32% or 1927.67 points from Sensex since the start of last week to Tuesday.