Shilpi Cable nosedives by 31% on debut

MUMBAI: Paring all its initial gains, cable manufacturer Shilpi Cable Technologies fell sharply in its debut today and closed the day by declining 31 per cent on the BSE from the issue price of Rs 69.

The stock, which opened the day with a gain of 13.55 per cent against the issue price, finally settled at Rs 47.60, down by 31 per cent on the Bombay Stock Exchange (BSE).

Profit booking dragged the company's shares on the National Stock Exchange as well, where it tumbled by 29.93 per cent to end the trade at Rs 48.35.

On the volume front, over 9 crore shares of the company changed hands on the two bourses during the day.

The company had fixed a price band of Rs 65-69 a share for its Rs 55.88 crore initial public offer.

The proceeds of the issue will be used for capital expenditure on its cable/wire assembly shop, tools for 3G enabling and augmenting cable manufacturing capabilities, long-term working capital requirements for proposed new businesses and for investment in the subsidiary of the company, Shilpi Cabletronics.

Meanwhile, the BSE barometer Sensex finished the day at 19,451.45, lower by 139.73 points.