Security and Intelligence Services (India) Ltd made a weak debut on the stock market on Thursday, with its shares losing initial gains to end 7% below the offer price.
Shares of the Delhi-based security services provider closed on the Bombay Stock Exchange (BSE) at Rs 756.70 apiece, compared with the initial public offering (IPO) price of Rs 815.
The stock began trading at Rs 875 apiece and touched an intraday high of Rs 878 and low of Rs 749 per share.
The BSE benchmark Sensex closed down 0.84% on Thursday. The gauge of the top 30 shares has declined over 3.5% from its record highs on 1 August.
The start comes after the IPO was covered seven times last week, with strong demand from retail investors albeit muted participation from non-institutional investors, including wealthy individuals as margin funding appeared unfavourable or risky given the weak undertone in secondary markets.
Through margin funding, also known as IPO funding, high net-worth investors (HNIs) borrow short-term capital from various avenues, barring banks, to…