PTC India Financial disappoints on debut

PTC India Financial Services (PFS), the non-banking financial company promoted by power trader PTC India, made a dismal debut on bourses on Wednesday. Its shares tanked more than 11 per cent even as the broader market gained ground.

On the National Stock Exchange (NSE), the share opened at Rs 26.75, a tad lower than the issue price of Rs 28. After touching an intra-day low of Rs 23.50, the stock, which never managed to touch its issue price throughout the trading session, finally closed at Rs 24.80, lower by Rs 3.20 or 11.43 per cent. A total of 36.74 million shares changed hands on the exchange.

On the Bombay Stock Exchange (BSE), it touched a low of Rs 23.50, before ending the day at Rs 24.90, 11.07 per cent lower than its issue price. A total of 22.86 million shares were traded. The total market capitalisation of the company is pegged at Rs 1,399 crore. The BSE 30-share Sensex closed 0.89 per cent, or 169.38 points, higher at 19,290.18.

With the proceeds, PFS intends to enhance its capital base to meet future requirements on account of business growth. The total size of the PFS offering was 156.7 million shares, of which 127.5 million were freshly issued by the company. The remaining 29.2 million shares were offered by Macquarie India Holdings, an existing investor in the company. According to reports, PFS plans to disburse loans to the tune of Rs 1,200 crore in 2011-12.