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Indo Thai Securities slumps 69% on debut

Capital Market / 16:09 , Nov 02, 2011

At Rs 23 on BSE

Shares of Indo Thai Securities settled at Rs 23 on BSE, a steep discount of 68.92% over the initial public offer price of Rs 74.

The stock debuted at Rs 75, a premium of 1.35% to the initial public offer (IPO) price. The stock hit a high of Rs 99.10 and low of Rs 18.10. On BSE, 3.73 crore shares were traded on the counter.

Indo Thai Securities' IPO received bids for 47.05 lakh shares and was subscribed 1.18 times. The company had put on offer 40 lakh shares in the price band of Rs 70-84 per share in the IPO which had remained open for bidding between 30 September 2011 and 5 October 2011.

Retail individual investors category was subscribed 3.35 times while non institutional investors was subscribed just 0.02 times. Qualified institutional buyers did not bid for any shares.

The company intends to spend the IPO proceeds for expansion and upgradation of existing branches and setting up branch network (with an outlay of Rs 2 crore), purchasing of office space for Mumbai regional office (with cost of Rs 4 crore), purchasing and setting up of office space for corporate office (with Rs 4 crore), brand building and advertising (Rs 3 crore) and augmenting long term working capital requirement (Rs 10 crore).

 



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