New Delhi, July 1 (HS): The shares of Shri Hare-Krishna Sponge Iron made a strong entry into the stock market today, delighting its IPO investors. Due to profit booking after the listing, the company's shares hit the lower circuit. However, shortly thereafter, buyers came in and broke the lower circuit.
The company had set a price band of ₹56 to ₹59 per share under the IPO. Today, it entered the NSE's Emerge platform at a 10 percent premium, at ₹64.80. With buying support after the listing, the shares jumped to ₹65.75, but then profit booking began, causing the shares to drop to the lower circuit level of ₹61.60 shortly thereafter. After that, buyers started buying again, breaking the lower circuit.
After a full day's trading, the company's shares closed at ₹64.55, resulting in an 9.41 percent gain for IPO investors on the first day of trading. The ₹29.91 crore IPO of Shri Hare-Krishna Sponge Iron was open for subscription from June 24 to 26. The IPO received an average response from investors, leading to an overall subscription of 6.43 times. Under this IPO, 21.56 lakh new shares with a face value of ₹10 were issued. The funds raised through the IPO will be used by the company for setting up its new captive plant, meeting working capital needs, and general corporate purposes.
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Hindusthan Samachar / Indrani Sarkar