Abans Holdings Ltd, the financial services division of the Abans Group dropped over 14% in its maiden opening trade today.
The shares of the newly listed company were trading at ₹230.60 per share on the BSE, down 14.6%. The stock hit a low at ₹218.65, and a high of ₹272.
On the NSE, the shares of Abans Holdings were trading at ₹232.20, at a discount of 14% from the issue price.
The company set the price band at ₹256 to ₹270 per equity share.
On the final day, the the Initial Public Offering (IPO) was subscribed 1.10 times, driven by strong response from qualified institutional buyers and non-institutional investors.
However, retail investors subscribed to less than half of the portion allotted to them.
The public issue opened on December 12, and closed on December 15.
The IPO offer consists of a fresh issue of up to 38 lakh equity shares and offer-for-sale by promoter Abhishek Bansal of up to 90 lakh equity shares.
Along with other basic business needs, the proceeds from the issue will be utilised to increase the NBFC subsidiary's (Abans Finance) capital base.
Given the current state of the market, Prashanth Tapse, Research Analyst and Senior VP Research at Mehta Equities Ltd, encourages cautious investors to avoid adding this stock on the listing day, and allotted investors to sell their shares on the day of the listing.