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Vaswani Industries plunges 71% on debut
Shares of Vaswani Industries got hammered on first day of the listing, falling as much as 71% to Rs 14 - an intra-day low - from its issue price of Rs 49 a share. The stock listed after a gap of almost five months; it came under SEBI investigation for large number of withdrawals and rejections in non-institutional investors' category.
Shares of Vaswani Industries got hammered on their capital market debut, falling as much as 71% to Rs 14 - an intra-day low - from its issue price of Rs 49 a share.
The stock listed after a gap of almost five months. It had came under SEBI investigation for large number of withdrawals and rejections in non-institutional investors' category.
At 10:13 hours IST, the share was trading at Rs 22.55, down 54% from issue price on National Stock Exchange. Total traded volume on both exchanges were more than 88.5 lakh shares against the issue size of one crore equity shares.
The issue was earlier subscribed 4.16 times, but after the series of withdrawals, it was subscribed just 1.28 times due to SEBI investigations.
On the day the issue closed, the stock exchange website showed institutional investors' portion subscribed as 0.16 times. High networth investors (HNIs) and retail investors' portion subscribed 11.29 times and 6.82 times, respectively. After withdrawals, reserved portion of these categories of investors was subscribed 0.16 times, 1.25 times and 3.7 times, respectively.
Vaswani Industries is in the business of manufacturing sponge-iron and steel billets, but gets over 50% of revenues from power generation.
