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OOdisha-based Ortel Communications had a lacklustre stock market debut, with its shares ending nearly eight per cent lower. Shares of the company ended at Rs 166.9 compared to its issue price of Rs 181. The stock traded between Rs 160 and Rs 168 on the National Stock Exchange (NSE). Cable and internet services company Ortel’s Rs 240-crore Initial Public Offering (IPO), the first in 2015, received only 80 per cent subscription, forcing the company to cut the issue size.
Ortel’s 12 million share offering comprised equally fresh issue and a secondary sale by private equity investor New Silk Route (NSR). Following weak demand, NSR, which owned 33.6 per cent stake in the company prior to the IPO, could sell only 60 per cent of the shares put on the block. The IPO closed on March 5.
Ortel is the second company whose shares have slipped below the IPO price on listing day. Shares of Monte Carlo, which had come out with an IPO in December are also trading below their issue price. The apparel manufacturer’s shares closed at Rs 485.6, down nearly 25 per cent compared to its issue price of Rs 645 a share.
Market players say poor post-listing performance could sour the mood of investors, warming up to IPOs after a long hiatus. Last year was one of the worst for the IPO market in almost a decade, in terms of capital raised. Only five companies managed to raised a total of Rs 1,200 crore through IPOs in 2014.
Inox IPO subscribed 60%
The Rs 1,000-crore IPO of Inox Wind was subscribed 60 per cent as on Thursday. The Gujarat Fluorochemicals-promoted company’s offering, the biggest since December 2012, will close on Friday. The IPO had bids for 13.74 million shares, against 23.2 million on offer. The firm has already raised Rs 300 crore from anchor investors, which include mutual fund houses Sundaram and IDFC and insurance companies, Tata AIA and Birla Sun Life.
Inox has priced its offering in a band between Rs 315 and Rs 325 a share and is offering a discount of Rs 15 per share to retail investors.
