When the promoters of Future Ventures India decided to offer shares at Rs 10, a section of investors thought even a marginal gain in the price after listing would give them an excellent exit option. Not many had thought the shares being offered at par would fall below the issue price on Day 1 itself.
On Tuesday, when the benchmark indices managed to end the trading session with marginal losses, shares of Future Ventures India could not hold on to its issue price of Rs 10. The initial public offer (IPO), incidentally, was subscribed 1.48 times with the institutional and retail portions remaining under-subscribed.
On the National Stock Exchange (NSE), the shares made its debut at Rs 9, before gaining slight ground to touch an intra-day high of Rs 9.65. It, however, fell in the later part of the session to touch a low of Rs 7.90, down 21 per cent from its issue price. The shares finally settled the day at Rs 8.25, with 174.75 million shares changing hands during the trading session. The benchmark Nifty, meanwhile, lost around 10 points to close at 5,541.25.
Company officials, meanwhile, maintained an unperturbed stance, highlighting the long-term growth prospects of the company. “We believe that we have created substantial value in brands and businesses we have created. The value will unfold and market will discover it,” said K K Rathi, chief executive officer, Future Ventures.
On the Bombay Stock Exchange, the shares made its debut at Rs 9.50, before touching a low of Rs 7.95. It closed at Rs 8.30, with 76 million shares being traded.