Muted debut for Navkar Corporation

The stock trading 5% higher at Rs 162 on the NSE after listed at Rs 152, a 2% below its issue price of Rs 155 per share.

Shares of Navkar Corporation were trading 5% higher at Rs 162 on the National Stock Exchange (NSE) after listing below its issue price. It opened at Rs 152, a 2% lower against its issue price of Rs 155 per share on the NSE.

The stock touched a high of Rs 164 and has seen a combined 8.49 million shares changed hands on the counter on the NSE and BSE till 10:08 AM. CNX Nifty was up 1.4% or 106 points at 7,794.

Navkar Corporation, a container freight stations (CFSs) operator in India with three CFSs, has raised Rs 600 crore through initial public offer (IPO).

The company had priced the IPO at the top end of the Rs 147 to Rs 155 per share. The issue was subscribed 2.29 times, with total bids for 88.69 million shares, compared with 38.71 million equity shares on offer.

The company intends to invest Rs 315 crore from the net proceeds of the IPO to develop a logistics park at Valsad, Gujarat, which will have an initial planned capacity of about 474000 TEUs per annum (p.a.) to be commissioned by September 2016.

About Rs 115 crore will be used to install a rubber tyred gantry crane at the existing Somathane CFS, which will increase the overall capacity of the company by 81% from 310000 TEUs p.a. to 5620000 TEUs p.a. by September 2016. The company intends to spend about Rs 54 crore for development of the non-notified areas of the CFSs which will also be developed by September 2016.