Mahanagar Gas Limited (MGL) shares debuted on the stock exchanges on Friday at 28 percent premium to its issue price of Rs. 421 per share.
The stock listed at Rs. 540 but later shed gains to trade at Rs. 526 at around 11.30 a.m. on the BSE. The Rs. 1,040 crore issue of MGL was oversubscribed 64 times after the issue closed last Thursday.
The trading at the MGL counter was brisk, with almost 24 lakh shares changing hands within hours of listing on the BSE.
MGL's promoters — state-run GAIL (India) and British Gas Asia Pacific Holdings — had offloaded a part of their stake, comprising 1.23 crore shares each, resulting in the listing of its shares. There was no fresh issue of shares by India's third largest city gas distribution (CGD) company.
The Sensex was trading at 27,201, up 202 points at around 11.35 a.m.. The rally on the 30-scrip benchmark index was being led by ITC, Dr Reddy's Labs and Larsen & Toubro.
JP Associates (JAL) shares were down 4.28 percent in response to news that its lead banker has SDR provisions, initiating steps for takeover by lenders.
"ICICI Bank, the lead banker for Jaiprakash Associates Limited (JAL), has invoked the strategic debt restructuring (SDR) provision, setting in play the process that could pave the way for the lenders cumulatively taking over the company," Standard Chartered Securities said in a note on Friday.
Gujarat NRE Coke has decided to issue equity shares to IDBI Bank on preferential basis.
"Gujarat NRE Coke Ltd has announced that the management committee of the company at its meeting held on June 30, 2016, has considered and allotted 2,44,66,745 equity shares of Rs. 10/- each at Rs. 11.03 to IDBI Bank on preferential basis," Standard Chartered Securities said.
The S&P BSE Auto index was up 0.23 percent. Automobile makers are expected to announce their June volume sales over two days starting Friday. Maruti Suzuki and Toyota Kirloskar Motor (TKM) have reported mixed results.
The Indian rupee gained for the third consecutive day and opened 3 paise higher at 67.49 to the US dollar on Friday. "The intra-day range is seen between 67.35-67.70 levels," IFA Global said in a note.