Nitesh Estates plunges 6% on debut

The Bangalore-based realty firm Nitesh Estates tanked nearly 6 per cent on the BSE over its issue price on the day of its listing today.

Shares of Nitesh settled down 5.68 per cent at Rs 50.95 on the Bombay Stock Exchange, over the issue price of Rs 54. During the day the stock fell by 11 per cent to touch an intra-day low of Rs 48.05. On the NSE the Nitesh counter closed down 5.18 per cent at Rs 51.20.

This is despite the fact that main indices gained nearly half-a-percentage point today and especially the BSE Realty Index was one of the biggest gainers today. A total of 3.80 crore Nitesh shares changed hands on both the bourses.

Meanwhile, despite the poor show, BSE decided to add Nitesh in its IPO Index effective May 17,a BSE statement said.

Last month, the company had raised Rs 405 crore through initial share sale at a face value of Rs 10 each. Incorporated in 2004, Nitesh Estates is primarily engaged in development of residential projects in Bangalore. It is in the process of diversifying into development of shopping malls and is expanding its reach to Chennai, Goa and Hyderabad.