India`s Avalon Technologies tumbles 8% in debut trading
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Shares of Indian electronic manufacturing services firm Avalon Technologies fell as much as 8.5% in the early hours of their trading debut on Tuesday, underscoring weak investor interest in a volatile capital market.
Avalon, which operates in the clean energy, mobility, communication and industrial segments, opened flat at 436 rupees. It was trading at 402.60 rupees as of 12:06 p.m. IST, giving it a market valuation of 26.29 billion rupees.
Both the benchmark indexes, the Nifty 50 and the S&P BSE Sensex, were down on Tuesday, falling 0.19% and 0.21%, respectively.
The Nifty 50 has fallen 2.2% so far this year.
Avalon's 11.5 million shares on offer were oversubscribed 1.36 times, according to data from the National Stock Exchange (NSE).
Its initial public offering (IPO) consisted of a fresh issue of shares worth 3.2 billion rupees and an offer for the sale of shares worth 5.45 billion rupees.
The company had reduced the size of its IPO to 8.65 billion rupees ($105.40 million) from 10.25 billion rupees due to pre-IPO placements, according to its prospectus.
Avalon did not immediately respond to Reuters' query on the reduced offer size.
The listing comes even as several companies put the brakes on their IPO plans earlier this year in the face of turbulent stock market conditions in recent days due to recession worries and fears about banks' financial health.
Personal care products startup Mamaearth put its IPO on hold while apparel retailer Fabindia and jeweller Joyalukkas withdrew their IPO.
($1 = 82.0650 Indian rupees)
