Midvalley fails to sizzle on debut; tanks over 17%

Midvalley Entertainment had a lacklustre debut on the Bombay Stock Exchange today, as the shares closed down over 17 per cent from its listing price.

After a volatile session, shares of the Chennai-based firm ended at Rs 58.05 a piece, down 17.07 per cent on the BSE. The scrip, however, debuted with a premium of 4.1 per cent and zoomed upto 9.28 per cent, touching an intra-day high of Rs 76.60.

On the volume front, over 3.38 crore shares of the company exchanged hands on the BSE.

The company, engaged in film production, distribution and exhibition in South India, had fixed the issue price of its initial public offer (IPO) at Rs 70 per share.

Midvalley Entertainment has raised about Rs 60 crore through its IPO.

The company intends to spend Rs 15 crore by entering into screening agreements with 300 cinema theatres in Tamil Nadu, Andhra Pradesh and Karnataka.

It has also earmarked Rs 25.95 crore for renovation and up-gradation of cinema infrastructure with digital equipment and other related assets for select 100 screens in South India.

Meanwhile, the BSE benchmark Sensex finished the day at 18,684.43, down 285.02 points from previous close.