Chennai, Feb 20 The stock of V-Mart Retail, which opened on a positive note on Day 1 of listing on Wednesday, failed to sustain the gains.
After opening at a high of Rs 214, the stock is currently hovering around Rs 203.30, a fall of 3.2 per cent or Rs 6.7 against the issue price of Rs 210 on the NSE. On the BSE, the stock is trading at Rs 205.25, which is the day’s low.
Over four lakh shares changed hands on both the exchanges.
The New Delhi-based company raised about Rs 95 crore through the public issue.
“After the IPO, our net worth would stand at about Rs 190 crore which will also give us leverage to raise debt for further expansion,” said Deepak Sharma, CFO, V-Mart Retail, said at the time of IPO launch.
The company, which follows a strategy of opening standalone stores only in small towns through a cluster model, plans to scale up its store count to 120 by 2015. Currently it operates 62 stores across 53 towns.
“We want to be present at the right place with right products. We don’t want to tie-up with malls as we want shoppers and not just visitors,” said Lalit Agarwal, Chairman, V-Mart, had said.
The company’s total income in FY’12 was pegged at Rs 280 crore with a PAT of Rs 11 crore.