Shares of steel fabrication firm Readymade Steel India got listed at Rs 115 apiece on the Bombay Stock Exchange today, reflecting a jump of over 6% vis-a-vis their issue price.
The stock surged by 6.48% against its issue price of Rs 108 a share on the BSE in opening trade.
However, within minutes, the stock came under heavy selling pressure and was trading at Rs 83.50, down 22.68% from the issue price.
Readymade Steel India, which is primarily in the business of providing ready-to-use steel for construction activities to the infrastructure industry, raised Rs 34.75 crore through the issue.
The company plans to utilise the issue proceeds for partly financing the expansion of its existing facility at Khopoli, in Raigad district of Maharashtra, and setting up of new facilities near New Delhi and Raipur, besides pre-operative expenses, including issue expenses and working capital requirements.