Stock Market

HPL Electric & Power closes 6% below IPO price on Day 1

Chillicious Bureau

It was a subdued listing for HPL Electric & Power on Tuesday. The stock closed at Rs 189.30, down 6.3 percent compared with issue price of Rs 202.

It touched an intraday high of Rs 198 and low of Rs 184.25 after opened at Rs 190 on the National Stock Exchange. Market capitalisation stood at Rs 1,217 crore at current closing price.

Traded volume on the exchanges was 1.81 crore shares that was worth over Rs 345 crore.

Investors’ loss was Rs 889 per lot. The lot size was of 70 shares and in multiple of 70 shares thereafter. The value of one lot was worth Rs 14,140 at IPO price of Rs 202, which reduced to Rs 13,251 at closing price.

The Rs 361-crore initial public offering, which opened for subscription during September 22-26, was oversubscribed nearly 8 times.

The company will use issue proceeds for repayment of loans, funding working capital requirements and other general corporate purposes.

HPL has presence in four electrical equipment segments – metering solutions, switchgears, lighting equipment and wires & cables. Its metering solutions business contributed nearly 50 percent to revenue in FY16.