Indosolar makes a weak debut; tumbles over 18 pc on BSE

MUMBAI: Heavy selling today dragged the shares of the solar power equipment maker Indosolar by over 18 per cent against its issue price of Rs 29 on the first day of trade on the Bombay Stock Exchange ( BSE).

Despite a positive opening, shares of Indosolar nosedived 18.27 per cent to settle at Rs 23.70 on the Bombay Stock Exchange. Market analysts attributed the fall to lack of retail participation in the issue.

After opening with a premium of 2.58 per cent, the share plunged by 21.37 per cent during intra-day.

"The fall in the stock is not surprising, as the retail participation was poor, which clearly suggests that the investors were not expecting much from the company. Besides, the scrip witnessed heavy selling on the debut day," CNI Research CMD Kishore P Ostwal said.

The scrip saw a similar downtrend on the National Stock Exchange and tanked 19.31 per cent to close at Rs 23.40. It was a volume buzzer with about 22 crore shares traded on the bourses.

Indosolar had priced its initial public offer at Rs 29, at the lower end of the price band of Rs 29-32 per piece. The Noida-based company has raised Rs 357 crore through its initial public offer ( IPO).

The firm is engaged in manufacturing of polycrystalline solar photo voltaic (SPV) cells from silicon wafers, which are used in converting sunlight directly into electricity through a process known as the photo-voltaic effect.

At present, the company has two SPV cell manufacturing lines with an aggregate annual manufacturing capacity of 160 MW.

Meanwhile, the 30-share benchmark Sensex also shed 148.52 points to finish the day at 19,956.34.