Bharti Infratel plunges over 13% in market debut
Mumbai: Shares of Bharti Infratel, which raised over Rs 4,118 crore in the biggest IPO in two years, plunged over 13 percent in its stock market debut on Friday.
After falling over 14 percent during the day, shares of the company finally ended at Rs 191.20, down 13 percent from its issue price of Rs 220 per share on the BSE.
At NSE, the stock settled 13.18 percent lower at Rs 191. Intra-day, the scrip hit a low of Rs 188.65 and a high of Rs 200.85.
The telecom tower company currently commands a market value of Rs 36,110 crore.
Bharti Infratel fixed the issue price at Rs 220 per share for institutional investors, while giving a discounted price of Rs 210 for retail investors.
With the sale of 18.89 crore shares, the company had raised Rs 4,118.01 crore, including about Rs 1,388 crore from retail investors and Rs 2,078 crore from other investors such as QIBs and HNIs.
The company had said it plans to use the proceeds from the IPO to fund its expansion and future acquisitions.
From 18 anchor investors, Bharti Infratel had raised Rs 651.7 crore. It allocated 2.83 crore shares at a price of Rs 230 apiece to them.
The IPO of the Sunil Bharti Mittal led-company was subscribed 1.3 times. The issue was open from December 11-14.
Bharti Infratel IPO is the biggest public issue in over two years. State-run Coal India's initial public offer raised about Rs 15,500 crore in October 2010.
Decline in Bharti Infratel stock was in sharp contrast to an overall strong stock market where the BSE benchmark Sensex ended at 19,444.84, up 121.04 points.