Solar power equipment maker Indosolar today tumbled 20 per cent on its debut from its issue price of Rs 29 on the Bombay Stock Exchange.
Shares of the company opened 2.58 per cent higher at Rs 29.75 on the BSE but within minutes of trade, the scrip lost ground and tanked as much as 20 per cent to an early low of Rs 23.20.
Similarly, on the National Stock Exchange, shares of Indosolar declined 20.86 per cent to Rs 22.95. However, the volumes were good on the first day of trade with about 6.8 crore shares being traded on the two bourses in the early session.
Indosolar had priced its initial public offer at Rs 29, at the lower end of the price band of Rs 29-32 per piece.
The Noida-based company has raised Rs 357 crore through its initial public offer (IPO). The IPO had garnered good response from retail investors and was oversubscribed 1.48 times at the end of the issue.
In the qualified institutional buyers category, the issue was oversubscribed 1.5 times and 1.44 times in high networth individuals category.
The firm is engaged in manufacturing of polycrystalline solar photo voltaic (SPV) cells from silicon wafers, which are used in converting sunlight directly into electricity through a process known as the photo-voltaic effect.
At present, the company has two SPV cell manufacturing lines with an aggregate annual manufacturing capacity of 160 MW.