MUMBAI: Shares in solar photo-voltaic cellmaker Indosolar Ltd slipped as much as 22 percent in the first half of the trading session on the BSE on Wednesday after it listed at a 3 percent premium to its issue price of 29 rupees.
BSE IPO index, which tracks 42 stocks that were listed in the past two years and whose market capitalisation was at least 1 billion rupees at listing, was flat.
"Indosolar IPO was subscribed just 1.55 times and the allotment was at the lower end of the price band. This shows very clearly that there was a lack of appetite for this IPO," said VVLN Sastry, chief research officer, Firstcall India.
Indosolar had raised 3.57 billion rupees from the IPO and intends to use the proceeds to scale up soalr cell manufacturing capacity to 260 MW by 2011 from current 160 MW.
Indian firms have raised more than $15 billion so far this year from share sales, third in Asia after China's $103 billion worth of issuances and Hong Kong's $18 billion.
"There are issues regarding pricing and the quality of the IPOs available in the market," said Kishor Ostwal, chairman at CNI Research, but he believes issues like Coal India are likely to have good apetite owing to its quality.
ET
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