Construction company Deepak Builders & Engineers India has disappointed investors with its listing performance as shares corrected 20 percent on the debut day, October 28, despite healthy IPO subscription numbers.
The stock started off at Rs 200 (which was also its day's high) on the NSE, lower by 1.5 percent compared to issue price of Rs 203. It closed near its day's low of Rs 160.51, down 20.22 percent at Rs 161.95 with volume of 76.4 lakh shares.
On the BSE, it finished at Rs 161.90, falling 20.25 percent with volume of 7.51 lakh shares.
As of closing price, the market capitalisation of Deepak Builders stands at Rs 754.14 crore.
The Punjab-based construction company has mobilised Rs 260 crore through its public issue of 1.28 crore equity shares at a price of Rs 203 apiece. The IPO comprises fresh issuance of equity shares worth Rs 217.2 crore and an offer-for-sale of 21.1 lakh shares worth Rs 42.83 crore.
The initial share sale was subscribed 41.54 times during October 21-23.
Deepak Builders, which has 12 ongoing projects with orderbook of Rs 1,380.3 crore, is going to utilise fresh issue funds for repaying debt, working capital requirements, and general corporate purposes.
The engineering and construction company is specialised in construction of administrative & institutional buildings, hospitals and medical colleges, and historical memorial, stadium and sports complex, and residential complex.
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