Shares of Suraj Estate Developers Ltd made a disappointing market debut on Tuesday, registering a decline of nearly 6 per cent from the issue price of Rs 360.
At the BSE, the stock made its debut at Rs 343.80, a discount of 4.5 per cent from the issue price. Later, shares of the company plunged 10 per cent to Rs 323.95.
The stock listed at Rs 340, a fall of 5.88 per cent on the NSE.
The initial share sale of Suraj Estate Developers fetched 15.65 times subscription on the closing day of bidding on Wednesday.
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The Initial Public Offer (IPO) had a price range of Rs 340-360 a share.
The Mumbai-based company's IPO was entirely a fresh issuance of equity shares worth Rs 400 crore with no Offer for Sale (OFS) component.
Proceeds would be used towards payment of debt availed by the company and its subsidiaries -- Accord Estates and Iconic Property Developers, and the acquisition of land. Besides, a portion will be used for general corporate purposes.
Suraj Estate Developers has developed real estate across the residential and commercial sectors in the South Central Mumbai region and has a residential portfolio located in the markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel.
