Mumbai: State-run hydro power generator NHPC,
on Tuesday made a disappointing debut on the bourses and settled with just two per cent gain over its issue price on the Bombay Stock Exchange.
The NHPC shares settled at Rs 36.70, just 70 paise or
1.94 per cent above its issue price of Rs 36 on the BSE.
"The overall weakness in the market due to global cues
cast a shadow on the listing of NHPC. Moreover, the price of
the scrip is not under-valued so there was no rush of
investors trying to enter at low levels," Bonanza Portfolio
Assistant Vice President Research Avinash Gupta said.
The scrip surged to an intra-day high of Rs 39.75, up
10.42 per cent over its issue price of Rs 36 within minutes
of opening trade.
The overall weakness in the broader market and the lack
of investor interest led NHPC to lose ground and it plunged to
an intra-day low of Rs 36.60.
"It (NHPC) is a long term investment and has nothing for
the short term so it is not likely to surge very much in the
first couple of months of the debut," Gupta added.
On the National Stock Exchange, the scrip settled with
2.08 per cent gain at Rs 36.75, after touching an intra-day
high of Rs 42.
Despite the disappointing debut, the scrip remained one of the top traded counters with over 70.23 crore shares
changing hands on both the bourses.
The BSE benchmark index Sensex today dropped 115 points
to settle at 15,551.
The company has listed over 1,230 crore shares on the
NHPC, which came out with an initial public offer (IPO)
last month raised over Rs 6,000 crore after getting subscribed
nearly 24 times.
It marks the second biggest public offering in the
country's history after Reliance Power.
The company would use the IPO proceeds to part fund its
ongoing investments for 11 projects, which are at different
stages. It also plans to add 14,000 MW power by 2020.
First Published: Tuesday, September 01, 2009, 23:20