Ortel Comm slumps below offer price

Ortel Communication got listed on the BSE today at Rs.181, which was the exact issue price. But it could not hold on this price much long and soon the stock started slipping. It is now at Rs.171 levels.

This cable TV company, based out of Odisha had a tough time getting its issue through. It had to cut down the size of its offer for sale on 5th March, the last day of subscription. From 60 lakh fresh shares and 60 lakh shares from New Silk Route, the size was cut down to 36.7 lakh shares.

In our section of New Issue Analysis, we had stated, “Limited geographic presence, bleak industry prospects in the foreseeable future, coupled with unjustified valuation in relation to peers, make the IPO pricing aggressive. Hence, one can give the issue a miss.”