Pradip Overseas, which made its debut on the bourses today, slipped below its issue price, even as the benchmark Sensex rose to a two-year high. Interestingly, the subdued listing comes on the back of an impressive subscription (nearly 14 times).
On Monday, Pradip Overseas made its debut at Rs 120 on the Bombay Stock Exchange (BSE), higher than its issue price of Rs 110. Later, it touched a high of Rs 123, before falling to the day’s low of Rs 102.30. The stock closed the day at Rs 107.15, down 2.59 per cent compared to the issue price. A total of 19.54 million shares changed hands on BSE, clocking a turnover of nearly Rs 216 crore.
On the National Stock Exchange (NSE), the stock made its debut at Rs 115 and touched a high of Rs 122.70. However, it could not sustain these levels and fell below the issue price to touch the day’s low of 102.15. The stock settled the day at Rs 106.80, down 2.91 per cent from the issue price. More than 25 million shares of Pradip Overseas were traded on the debut day at NSE.
Pradip Overseas, which raised nearly Rs 120 crore through its initial public offer, intends to use the issue proceeds to finance a manufacturing facility in a textile SEZ and to fund the incremental margin money requirement for working capital.