Muthoot Finance, a non-banking finance company, engaged in the gold loan business, made a strong debut on the NSE today, opening with a premium of over 12% vis-a-vis its issue price of Rs 175.
Shares of the company debuted at Rs 196.60 apiece, up 12.34% from their issue price on the National Stock Exchange (NSE). Within minutes of trade, the scrip saw some profit booking and was trading at Rs 177.15.
On the Bombay Stock Exchange, the scrip debuted at Rs 180 a piece over the issue price, reflecting a jump of 2.85%.
In terms of volume, over two crore shares of the company changed hands on the bourses within first one hour of trade.
Muthoot Finance had entered the capital market with a price band of Rs 160-175 a share under its IPO of 5.15 crore equity shares.
The company raised Rs 901.25 crore through the issue of 5.15 crore equity shares, which will be mainly used to augment its capital base for meeting future capital needs, to fund of loans and for general corporate purposes.