Shares of city gas distribution company IRM Energy made a disappointing market debut on Thursday, listing with a discount of over 5 per cent, against the issue price of Rs 505.
The stock listed at Rs 479, registering a decline of 5.14 per cent from the issue price on the BSE. It further fell 10.88 per cent to Rs 450.05.
At the NSE, the stock made its debut at Rs 477.25, a fall of 5.49 per cent.
In the equity market, the 30-share BSE Sensex quoted 724.75 points or 1.13 per cent lower at 63,324.31 in the late morning trade and the Nifty plunged 218.60 points or 1.14 per cent to 18,903.55.
"The IPO was well received by investors, and oversubscribed by 27 times. However, the current market condition could be a reason behind such a poor listing," Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said.
The Initial Public Offering (IPO) of IRM Energy was subscribed 27.05 times on the last day of subscription on Friday.
The Rs 545.40-crore initial share sale had a price range of Rs 480-505 a share.
The IPO was a fresh issue of up to 1.08 crore equity shares.
IRM Energy provides piped natural gas and compressed natural gas. It has operations in many states, including Gujarat, Punjab, and Tamil Nadu.