Puravankara makes debut at a discount

Puravankara makes debut at a discount

Puravankara Projects Ltd, the Bangalore–based real estate development company that was forced to scale back its share offer amid market volatility, closed at Rs362.30 a share on the National Stock Exchange (NSE) on its debut, a discount to its issue price.

The final traded price on NSE was almost a 10th lower than the issue price of Rs400 that investors paid during the initial public offer (IPO) that closed on 8 August.

There were wide fluctuations during the day’s trading, ranging from a high of Rs390 to a low of Rs310. About Rs401 crore worth of shares changed hands during the day.

The Puravankara IPO, which initially opened to investors on 31 July in a price band of Rs500-525 per share, was subsequently offered at a reduced Rs400-450 band owing to a low offtake of shares, which the company blamed on volatility in the global equity markets.

Puravanakara found takers for just one-fourth of the 21.5 million shares on the first day of offer.

On the Bombay Stock Exchange, the shares closed at Rs361.75 a share. Here, too, there was a fair element of volatility with the scrip hitting a high of Rs399 and a low of Rs357.55 a share.