The poor show by small-company initial public offer (IPO) continues. The share price of Taksheel Solutions crashed 62 per cent on listing on Wednesday. The stock closed at Rs 55.85 on the Bombay Stock Exchange, against the IPO price of Rs 150. The issue was subscribed 2.99 times, with the majority of applications coming from retail investors.
The share price of Flexituff International, another company listed on Wednesday, rose seven per cent from the IPO price. The share closed at Rs 166.4 on BSE, against the issue price of Rs 155. The Madhya Pradesh-based mid-size polymer products company, Flexituff, had raised Rs 105 crore through its IPO and is backed by private equity firm Clearwater Capital, which specialises in buying special situation and distressed or undervalued assets.
There was high volatility in Taksheel, as the share rose to touch an intra-day high of Rs 185 and a low of Rs 38.5. Taksheel’s promoters had raised Rs 82.5 crore by selling 55 million shares in the IPO. The Hyderabad-based firm offers information technology (IT) products and services to telecom companies.
Clearwater had invested around Rs 46 crore in Flexituff. Intra-day, the share price of the company touched a high of Rs 185 and a low of Rs 142 on BSE.
Clearwater, which part-exited the issue, has seen its holding shrink from 25 per cent to 10.3 per cent. It sold more than 2.2 million shares though the IPO, which accounted for a third of the issue, to rake in Rs 34.87 crore. Its remaining stake in the company is worth Rs 36-38 crore.