Emmbi Polymers slips 30% after listing
Mumbai-based Emmbi Polyarns, a polymer-processing firm, listed on the stock markets on February 24. The stock listed at Rs 46, at a premium against its issue price of Rs 45. However, an hour into trading, the stock slipped as much as about 30% to Rs 30.
At 11.54 am, the stock was trading at Rs 30.45 on the BSE.
The company raised about Rs 40 crore by listing 95 lakh shares. Retail response for the IPO was weak and one FII was allotted about 19% of the total issue while 11 bodies were allotted about 61.7% of the total issue. There were no applications from the mutual funds.
In an interview with CNBC-TV18, the company’s Managing Director Makrand Appalwar said the company would use the IPO proceeds towards capacity addition. Sales, he said, were expected to increase by 25-30% to Rs 50 crore by the end of FY10.
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