Vishnu Prakash R Punglia Ltd made a solid debut on stock exchanges on Tuesday. The stock was listed at Rs 165 per share on the NSE, a strong premium of 66.66 per cent to the issue price of Rs 99 per share.
On the Bombay Stock Exchange (BSE), Vishnu Prakash R Punglia shares were listed with a 65 per cent premium at Rs 163.30 per share.
Post-listing, however, the share price plunged over 10 per cent to Rs 149.75.
"The company's listing was in line with expectations, as it is a well-established company with a strong track record in the water supply sector. The company is also benefiting from various government initiatives, which are likely to boost its growth in the coming years. The IPO was well-received by investors, with the issue being subscribed to 87.82 times," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.
"Investors who participated in the IPO can either book profits immediately or hold on to their shares for the long term," she added.
The initial public offering (IPO) worth Rs 308.88 crore opened for subscription on 24 August and closed on 28 August.
Vishnu Prakash R Punglia's public issue was subscribed to 87.82 times in total. The retail investors category was subscribed 32.01 times, and the qualified institutional buyers’ (QIB) portion was subscribed 171.69 times. The Non-Institutional Investors (NII) category received 111.03 times subscriptions.
The IPO price band was fixed at Rs 94 to Rs 99 per equity share. The lot size was 150 shares.
The infrastructure company aims to utilise the proceeds from the issue to fund capital expenditure requirements for purchasing equipment and machinery, fund the working capital requirement, and meet general corporate purposes.
At 12:35 PM, the stock was trading 49.45 points, or 49.95 per cent, higher at Rs 148.45 on the NSE.
Ahead of its listing, Vishnu Prakash R shares were commanding a strong premium of Rs 55–60 in the grey market.