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Virendra Verma

Mumbai , Sept. 23

SHARES of HT Media, publisher of The Hindustan Times, are being bought from the open market by the company's IPO merchant banker as the stock price has fallen below the issue price.

HT Media had raised money from the capital market by offering shares at Rs 530 a share. The shares had made a debut on the bourses at over Rs 700 but in the last few trading sessions, the stock has fallen below the issue price; it closed at Rs 408.10 on the BSE on Friday, against the previous day's close of Rs 417.10.

At the time of IPO, the issue received good response from the investors as the issue was oversubscribed. The issue had a greenshoe option.

Kotak Mahindra Capital Company, the merchant banker, is buying these shares from the open market as a stabilising agent to arrest the slide in the stock price.

According to the filings made by the company to the stock exchange, Kotak Mahindra has bought 1.45 lakh shares till now at a total cost of around Rs 6.31 crore. Purchase of shares commenced from September 12 onwards and the last buy was on September 20.

An official of Kotak Mahindra said the stabilising period would end in a few days.

Stabilising agent's objective is price stabilisation post the listing of a company's shares and 30 days from the time of listing are allowed for that.

The shares bought from the market are credited into the account of lender of shares when the issue is oversubscribed. The HT Media promoters offered shares in the oversubscription of IPO. Since the shares sold by them were at Rs 530 a share, while the shares bought were at a lower price, the difference will go to the investor protection account of stock exchanges.

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