PVC pipe manufacturer Prince Pipes and Fittings Ltd made a weak debut on the stock exchanges on Monday with its shares listing at an 11.25% discount to their issue price.
Shares of Prince Pipes began trading on the BSE at Rs 160 compared with its initial public offering price of Rs 178 apiece. The stock oscillated between Rs 177.95 and Rs 152.60. It closed at Rs 166.60 apiece, notching up a loss of 6.4% on its debut.
The BSE’s benchmark Sensex ended flat after gaining as much as 0.3% in morning trade.
The subdued listing follows an IPO that managed to receive full subscription on the final day. The IPO was subscribed 2.2 times.
Prince Pipes is the 15th company to list its shares on the main board of the stock exchanges this year. Seven of the previous 14 companies have made strong debuts while four tanked and three others ended flat after losing initial gains.
Prince Pipes now commands a market capitalisation of Rs 1,833 crore compared with the valuation of Rs 1,958.45 crore that it had sought through the IPO.
The Rs 500-crore IPO comprised a fresh sale of shares worth Rs 250 crore and a secondary sale of an equal amount by the promoter and members of the Chedda family.
Prince Pipes had originally filed for an IPO in September 2017. It had received regulatory approval in November the same year. At that point, it was looking to raise Rs 700 crore. However, macro-economic factors and global events resulted in a sharp decline in the stock market, including its listed peers, prompting the firm to put the IPO on ice.
In October 2018, the company had filed a revised draft red herring prospectus and cut its offer size to Rs 600 crore.
JM Financial Institutional Securities Ltd and Edelweiss Financial Services Ltd managed the share sale.