Popular Vehicles and Services had a subdued trading session on its debut on the bourses on March 19. The stock fell more than 6 percent due to muted IPO subscription numbers and weakness in equity markets.
Popular Vehicles and Services opened lower at Rs 289.20 on the NSE (which was also its intraday high), down 2 percent compared to the issue price of Rs 295, and corrected further up to Rs 262.40, an intraday low (down 11 percent from issue price).
The stock remained under pressure throughout the session and finally settled at Rs 276.15, down 6.39 percent with a volume of 45.18 lakh equity shares, while on the BSE, it closed 6.36 percent down at Rs 276.25 with a volume of 3.82 lakh equity shares.
The IPO by the Kerala-based automobile dealer did not get a healthy response subscribing just 1.23 times during March 12-14.
Meanwhile, the market remained in a bear trap as Nifty 50 corrected 1 percent on March 19 and fell more than 3 percent from its all-time high on March 11.
Also read: Popular Vehicles makes a weak debut: Should you buy, sell or hold?
In fact, its IPO shares did not attract any premium in the grey market, an unofficial platform for trading in IPO shares till the listing, observers said.
Popular Vehicles and Services raised Rs 601.55 crore through its maiden public issue comprising a fresh issue of Rs 250 crore worth of shares and an offer-for-sale (OFS) of 1.19 crore shares worth Rs 351.55 crore by private equity fund BanyanTree Growth Capital II, LLC.
The price band for the public issue was Rs 280-295 per share.
Also read: The Good Glamm Group is in talks to raise $70 million ahead of planned IPO next year
This was the fourth subdued listing in the current month. R K Swamy, JG Chemicals and Gopal Snacks also closed lower on the debut day, falling 8.6 percent, 16.5 percent and 10 percent, respectively.
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