The share price of RDB Rasayans fell 66 per cent on debut on Friday. Unusual volatility was witnessed in the counter, despite a sharp upmove in the key benchmark indices Sensex and Nifty by 2.79 per cent cent and 2.88 per cent, respectively.
The share price of the company closed at Rs 26.50, against the issue price of Rs 79. In intra-day trade, the stock touched a low of Rs 19.8 and a high of Rs 93 on the Bombay Stock Exchange.
The company had raised Rs 35.5 crore though its initial public offer (IPO) last month and promoters had diluted 25.4 per cent equity. Market sources said such volatility is primarily due to high operator activity in the counter. About 30.5 million shares were traded on Friday. The price band of the issue was fixed between Rs 72 and Rs 79 a share. Chartered Capital and Investment Limited was the sole book running lead manager for the Issue.