Debutant JAT Holdings share closes below offer price

The debutant JAT Holding share yesterday failed to impress investors as the share closed below the issue price.

JAT Holdings share closed at Rs.24.20, down 2.80 or 10.37 percent from the issue price of Rs.27. The day’s price range for the share was Rs.29.00-Rs.23.70.

The company’s IPO of 82.9 million ordinary voting shares by way of a combination of an offer for subscription and an offer for sale, which opened July 20, was oversubscribed on the initial day itself.  The IPO offered for subscription of 55.8 million ordinary voting shares at Rs.27 per share, and 27.1 million ordinary voting shares at Rs.27 per share were offered for sale. Proceeds from the IPO have been allocated towards enhancing the firm’s existing R&D facility, expanding the WHITE by JAT marketing and development initiatives and the establishment of a manufacturing facility in Bangladesh and East Africa.