Mumbai: Shares of Garden Reach Shipbuilders and Engineers Ltd debuted at around 12% discount to its issue price after its 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 104 a piece, compared to the issue price of 118, which was the upper end of the IPO’s price band of 114-118 per share. At 10.17am, the stock was up 2.69% at 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 108.65 and a low of 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.

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