BENGALURU: Ortel Communications Limited (Ortel) debuted at Rs 160.05 per share on the National Stock Exchange (NSE), about 11.6 per cent below its listing price or Rs 181 per share on 19 March. The company had issued its shares at Rs 181 each early this month in its initial public offer (IPO), which was under subscribed by about 25 per cent.

The high for the day was Rs 168.05 and it closed at Rs 162.25 on the NSE. Close to 26520 shares traded on the NSE at traded value of about Rs 43.90 lakh. 

Note: 100,00,000 = 100 lakh = 10 million = 1 crore. 

On the Bombay Stock Exchange (BSE), the stock breached the lower circuit of Rs 171.95 with a turnover of Rs 5.11 lakh and a total traded quantity of 2964 shares.

Financial industry sources explain that though the company is in the last mile connectivity business, its performance over the last few years has been dismal and hence the poor opening.

The Ortel IPO opened on 3 March, 2015 for up to 1.2 crore (12 million) equity shares of face value of Rs 10 each including a share premium per equity share. The price band was fixed from Rs 181 to Rs 200 per equity share. The issue constituted 39.25 per cent of Ortel’s fully diluted post-issue paid up equity share capital and included up to 60 lakh fresh issue shares and 60 lakh shares by the selling shareholder NSR-PE Mauritius LLC. Facing a lukewarm response, the company had to cut the offer size by 36.7 lakh shares, pruning the NSR component from the IPO to that extent.

The company had allotted 25.57425 lakh equity shares (28.416 per cent of QIB portion) at the rate of Rs 181 per share aggregating Rs 46.29 crore to Axis Mutual Fund and ICICI Prudential Life Insurance, before the IPO opened.