Karda Constructions Ltd. listed at a discount to its issue price and the stock fell on the first day of trading after the developer raised funds to repay debt.
The stock opened 24.4 percent lower than the issue price at Rs 136 on the National Stock Exchange compared with the IPO price of Rs 180. Shares fell as much as 28.2 percent to Rs 129.2 during early trading. Its market capitalisation stood at Rs 221 crore at the time of listing.
The Nashik-based construction company’s Rs 77.4 crore initial public offering was subscribed 2.44 times on the final day of bidding as it issued new stock and promoters sold part of their stake.
The developer has completed 17 projects with a carpet area of 10.5 lakh square feet. At present, it has 11 ongoing and three planned projects with a carpet area of 17.1 lakh square feet.
The company clocked a revenue of Rs 105.3 crore in the financial year ended March 2017, nearly a 5 percent jump over the previous 12 months.