Bear of the Day: Recent listing that slipped 33% in 3 days

A rather weak start to 2011 for the Indian markets has taken a toll on recently listed textile firm Shekhawati Poly-Yarn, which slipped a further 6.92% or Rs 1.90 today, in a strong BSE, to end at Rs 25.55. It touched an intraday high of Rs 29.20 and an intraday low of Rs 24.75. There were pending buy orders of 2,999 shares, with no sellers available. The total traded volumes were of 4,797,524 shares. However, the share has slipped 32.85% over the last three trading sessions.

The share started the first session on January 12 at Rs 50, a premium of 66.67% over an issue price of Rs 30 a share on National Stock Exchange. The share ended the first day with a 58% premium on the BSE.

It raised Rs 36 crore through its initial public offering of 1.2 crore equity shares at a fixed price of Rs 30 a share. The firm is presently engaged in manufacturing of texturised and twisted yarn. Now it proposed to commence manufacturing of Knitted Fabric from Texturised Yarn.

The company has projected to double its revenues in the next fiscal year. For the year-ended March 2011, it expects revenues of Rs 125 crore. On the business front, the company received some orders for knitting machines, which it will ship to China. The commissioning of these machines is expected to start in early March.

Also read: Shekhawati Poly Yarn expects revenue of Rs 250cr next yr