Ortel Communications falls 11.6% on listing day

Mumbai: Shares of Ortel Communications Ltd opened 11.6% lower on its listing on Thursday.

The stock opened at ₹ 160.05 in its debut trade, ₹ 20.95 lower than its initial public offer (IPO) price, on the National Stock Exchange (NSE). At 10.15am, it was trading at ₹ 166, down 8.3%.

The company had issued shares at ₹ 181 apiece in its IPO, which was subscribed by 0.75 times. The company raised around ₹ 175 crore and the proceeds of the issue would be utilized for expansion of the company’s network for providing video, data and telephony services and general corporate purpose.

The IPO size was 9.45 million shares, excluding the 2.55 million shares picked by anchor investors. This included a fresh issue of shares besides an offer for sale by the New Silk Route (NSR). The PE firm was looking for partial exit in the IPO.

Of the total 12 million shares on offer, NSR had offered to sell 6 million shares, while Ortel offered 6 million fresh shares. Of this, 9.67 million shares were subscribed in total, including the anchor allotment portion.

Ortel offers digital and analog cable TV, broadband and value-added services through primary point cable business model in Odisha, Chhattisgarh, West Bengal and Andhra Pradesh.