Tarapur Transformers made a volatile debut on stock exchanges today. The stock yo-yoed around the listing price, shooting up by almost 30 per cent during the first half of the trading session, but finally closing at a level that was almost 25 per cent lower than the issue price.
On the National Stock Exchange, the stock got listed at Rs 75. It touched a high of Rs 97.45, before entering into a free-fall mode. Later, it dipped to a low of Rs 54.30 and closed the day at Rs 55.20, which was 26.4 per cent, or Rs 19.80, lower than the issue price. A total of 81.32 million shares were traded on the debut day.
On BSE, the stock touched a high of Rs 97.50, before falling to a low of Rs 54.10. The shares settled the day at Rs 56.90, with a total of 63.51 million shares changing hands. Less than five per cent shares, however, resulted in delivery.
The public offer, which closed on April 28, was subscribed 1.74 times. While the qualified institutional buyers category was subscribed only 0.03 times, the non-institutional investors category was subscribed 5.07 times and the retail segment was subscribed 2.73 times. The proceeds of the initial public offer will be utilised for expansion and modernisation of a manufacturing unit at Pali in Maharashtra and to part-finance an acquisition.