Shares of Bharti Infratel, which raised over Rs 4,118 crore in the biggest IPO in two years, made a weak debut on the bourses today, falling by nearly 11 per cent over its issue price of Rs 220 per share.
The stock opened at Rs 200, down 9 per cent from its issue price on the BSE.
Similar was the trend on the NSE where the stock plunged 10.70 per cent to Rs 196.45 after a disappointing debut in early morning trade.
The company has 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 two years. State-run Coal India's initial public offer raised about Rs 15,500 crore in October 2010.
Bharti Infratel shares plunge at pre-open market debut
Reuters: Shares in Bharti Infratel Ltd slumped 9.1 percent in pre-open trade on their Mumbai stock market debut on Friday after the mobile tower operator raised about $760 million in the country's biggest initial public offering in two years.
Bharti Infratel, a unit of top Indian mobile phone carrier Bharti Airtel Ltd, pre-opened at 200 rupees on both the National Stock Exchange and Bombay Stock Exchange. Shares will open for trading at 0430 GMT. That compares with its IPO price of 220 rupees per share for funds and wealthy investors, who received the majority of the share allocation.
Bharti also sold shares to retail investors at 210 rupees, and allocated shares at 230 rupees to cornerstone investors.
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