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Career Point doubles on listing day

Chandan Kishore Kant & Ashok Divase  |  Mumbai 

First company to do so in 18 months.

For the first time in 18 months, the share price of a company doubled on the first day of it getting listed on the domestic exchanges.

Career Point Infosystems, a Rajasthan-based tutorial company, debuted on a strong note. The shares, with an issue price of Rs 310, got listed at a premium of 48.7 per cent at Rs 461 and went all the way up to Rs 674 before settling at Rs 632.35, up 103.98 per cent. The counter saw a high volume of 14.9 million shares on the Bombay Stock Exchange.
 

STAR DEBUTS
LAST 12 ISSUES THAT DOUBLED ON THE LISTING DAY
Name  Listing date % chg
Burnpur Cement 3-Jan-08 286.25
Everonn Systems 1-Aug-07 241.75
Allied Computer 23-Nov-07 214.17
Religare Enter 21-Nov-07 182.00
Vishal Retail 4-Jul-07 178.59
Aishwarya Telec 7-May-08 159.57
Nitin Fire Prot 5-Jun-07 154.79
Icra 13-Apr-07 141.70
Edserv Softsys 2-Mar-09 129.25
MIC Electronics 30-May-07 123.77
Mundra Port 27-Nov-07 118.57
Career Point Info 6-Oct-10 103.98
Source : BS Research Bureau

The earlier such occasion was in March 2009, when Edserv Softsystems debuted with a closing gain of 129.25 per cent.

The initial public offer of Career Point Infosystems opened on September 16. The issue was subscribed 47.39 times. The company provides tutorial services for engineering and medical entrance exams. It plans to use the IPO proceeds to construct and develop an integrated campus, expand classroom infrastructure and meet expenses on general corporate activities.

Interestingly, despite being in a rising market, many recent listings did not perform well and closed in the negative territory. For instance, Microsec Finance, listed on Tuesday, closed at a discount of six per cent against the issue price.

Similarly, shares of Tirupati Inks went southwards and ended 14.8 per cent lower on the listing day, while shares of Indo Solar dipped 18.3 per cent.

In the current financial year, 25 companies have hit the capital Of these, the shares of 11 did not gain on the listing day. The highest gainer among these was Prakash Steelage, which rose 71 per cent at the close of trade on its listing day.

Eros International Media was another entrant on Tuesday; it settled at Rs 190.05, up 8.6 per cent against its issue price of Rs 175, after touching a high of Rs 217.70. On Wednesday, the BSE Sensitive Index, or Sensex, closed at 20,543.08, up 0.7 per cent, or 135.4 points.

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First Published: Thu, October 07 2010. 00:39 IST
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