Wiping out its initial gains, shares of gold finance company
Muthoot Finance on Friday closed at Rs 172.60 on NSE, lower by 1.37 per cent over the issue price.
After debuting at Rs 196.60 apiece, shares of the company had surged by over 13 per cent to touch a high of Rs 198.90 during the day.
Later, the shares settled at Rs 172.60, down 1.37 per cent from the issue price of Rs 175 on the National Stock Exchange (NSE).
On the Bombay Stock Exchange, Muthoot's counter, however, ended with a gain of 0.71 per cent at Rs 176.25 vis-a-vis the issue price.
"Even an auspicious day like Akshaya Tritiya could not help the company in attracting investors. Both the precious metals silver and gold fell on the back of weak global cues. This also spoiled the company's party on the Dalal Street," Religare Securities Executive VP Retail Research Rajesh Jain said.
On the volume front, over 8 crore shares of the company were trade on the bourses during the day.
Silver nosedived by Rs 6,000 to Rs 53,200 per kg and gold plummeted by Rs 225 to Rs 22,120 per 10 grams today.
Muthoot Finance had entered the capital market with a price band of Rs 160-175 a share under its IPO of 5.15 crore equity shares.
The company raised Rs 901.25 crore through the issue of 5.15 crore equity shares, which will be mainly used to augment its capital base for meeting future capital needs, to fund loans and for general corporate purposes.
Meanwhile, the BSE broader gauge Sensex ended the day higher by 308.23 points at 18,518.81 level.
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