Smart listing for Rushil Decor; stock surges 66 %

MUMBAI: Shares of Gujarat-based Rushil Decor, a manufacturer of decorative laminated sheets and plain particle board made a smart debut on the Bombay Stock, as the stock ended the day with gains of over 66 per cent.

This morning the stock got listed at Rs 81.25 a piece, with a premium of 13 per cent over their issue price then rallied further to see an intra-day high of Rs 124.05, up 72.29 per cent over its issue price of Rs 72.

The stock ended the day at Rs 119.65 and with a market valuation of Rs 172 crore.

On the volume front as well good numbers were witnessed as 3.71 crore shares of the company changed hands on the BSE during the day.

The company tapped the capital market to raise funds for financing its new Rs 73 crore diversification project in Karnataka to produce medium density fibre (MDF) board, which is expected to commence production in November this year.

The proceeds of the issue will also be utilised for meeting the company's working capital margin requirements.

The company currently has four state-of-the-art manufacturing plants in Gujarat -- three near Gandhinagar and another at Surendranagar district in Saurashtra region of the state.

The company's diversification into MDF manufacture is in furtherance of its strategy to increase its share in the mid-market segment, which is the largest segment of the market, improving the product mix and profitability of the company, Rushil Decor's Vice President Vipul S Vora had said.