CARE debuts on bourses at 25% premium over issue price

India's second largest rating agency Credit Analysis and Research (CARE) opened at Rs 940, a premium of 25.33 percent over its issue price of Rs 750 on the National Stock Exchange on Wednesday. The listing price was in-line with expectations as most of analysts were expecting it to be at around Rs 900.

The stock touched a high of Rs 955 and low of Rs 895 in early trade.

The exchange has fixed a circuit limit of 20 percent (over and below the opening price of Rs 940) for the stock; accordingly the upper price band comes to Rs 1,128 while lower price band at 752.

At 10:20 hours IST, the stock rose 24.45 percent to Rs 933.40 with trading volume of over 28 lakh equity shares.

The Rs 540-crore issue, which opened for subscription during December 7-11, was oversubscribed 40.98 times, helped by all kind of investors.

CARE raised Rs 540 crore through the issue, diluting 25.22 percent stake in the company by promoters. It was offer for sale, therefore the promoters received entire issue proceeds.

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