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Shares of Gujarat-based Rushil Decor, a manufacturer of decorative laminated sheets and plain particle board, made its debut on the Bombay Stock Exchange today at Rs 81.25 apiece, a premium of 13 per cent over the issue price.
The scrip opened on a bullish note at Rs 81.25, then rallied to a high of Rs 84.85, up 18 per cent over its issue price of Rs 72 within minutes of listing on the BSE.
The stock was later trading at Rs 83.50 on BSE at 10.40 a.m.
On the volume front, 85.77 lakh shares of the company changed hands in early trade on the BSE.
The company tapped the capital market to raise funds for financing its new Rs 73 crore diversification project in Karnataka to produce medium density fibre (MDF) board, which is expected to commence production in November this year.
The proceeds of the issue will also be utilised for meeting the company’s working capital margin requirements.
The company currently has four modern manufacturing plants in Gujarat —— three near Gandhinagar and another at Surendranagar district in Saurashtra region of the state.
The company’s diversification into MDF manufacture is in furtherance of its strategy to increase its share in the mid-market segment, which is the largest segment of the market, improving the product mix and profitability of the company, Rushil Decor’s Vice-President, Mr Vipul S. Vora, had said.
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