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.
Editor's Picks »
- India to put former top climate change official Rajendra Pachauri on trial for sexual harassment
- Rahul Gandhi hits out at KCR, claims Telangana reeling under debt
- Deve Gowda-Siddaramaiah display rare bonhomie ahead of Karnataka by-polls
- Govt allocates Rs 144 crore to AYUSH ministry for alternative medicines
- Esperanto, A language whose time never came
- Policy rethink and higher volumes to aid container shippers
- DCB Bank delivers a strong Q2 but pressure on margins foreseen
- Havells India: Rising costs give a jolt to profitability in September quarter
- All’s well at Mindtree, except for high client concentration risk
- India’s rising steel demand is making companies starry-eyed