DEN Networks takes IPO hit
India cable operator DEN Networks, which mounted its IPO earlier this week, made its debut on the Bombay Stock Exchange Nov 24. It wasn't a good moment.
In a busy session the New Delhi-based company's shares opened at the issue price of Rs195, did manage to hit a high point at one moment during the day of Rs197 but also slumped during the session to as low as Rs149.50 (a 19% fall) before closing out at Rs163.10, a fall on the initial trading price of 16.36%. Some 7.7m shares were traded during the session.
The IPO saw 15.2% of the company float. In the past two years DEN has expanded its digital services to 37 cities, and says the cash raised in the IPO will pay down debt and fund further expansion.