Shares of Ortel Communications tumbled 11 per cent, after opening at the listing price of Rs 160.05 on the NSE. The company had fixed the IPO issue price at Rs 181. The stock is currently is hovering around Rs 168.

The IPO of cable TV services provider received lukewarm response and the company was forced to cut the size of offer for sale (OFS) on the last day of the issue to make the offer successful.

The Orissa-based company has fixed its issue price at the lower end of the price band of Rs 181-200 apiece. Ortel Communications had raised Rs 175 crore through the issue.

As against 1.2 crore shares for sale, consisting 60 lakh shares fresh issue and 60 lakh shares OFS by New Silk Route, the company had reduced the size of OFS to 36.7 lakh shares.

Ortel Communications had raised Rs 46 crore from anchor investors by selling 2.5 million shares at Rs 181 a piece. The anchor investors include Axis Mutual Fund and ICICI Prudential Life Insurance.

This was the company’s second attempt to hit the capital market. Earlier in 2013 also, the company had tried to tap the capital market but that did not take off.

The company plans to use the proceeds of the issue for expansion of the network by providing video, data and telephony services. Funds will also be used for general corporate purpose.

Through primary point cable business model, Ortel Communications offers digital and analog cable TV, broadband and VAS services in Odisha, Chhattisgarh, West Bengal and Andhra Pradesh. Ortel is a regional player with Orissa accounting for 90 per cent of the total customer base of 5.26 lakh.