Prannoy Roy promoted NDTV, one of the leading broadcasters of news and current affairs programmes had a fabulous debut on the bourses yesterday. The scrip got listed at a premium of 44.29 per cent to the final offer price of Rs 70.
It opened at Rs 101 on BSE, hit a high of Rs 124.85 and a low of Rs 86.65. Volumes were high at 6665584. Total trades executed were 42661. It has closed the day at Rs 99.40, a gain of 42 per cent to the offer price. of Rs 70.
On the NSE, the scrip opened at a price of Rs 105, hit a high of Rs 120 and a low of Rs 86.65, before closing at Rs 98.50. Volumes were extremely high at 12782835.
The listing ceremony which was originally scheduled for Tuesday, May 18, 2004 was postponed to Wednesday following Monday’s rout on the bourses. The listing was conducted at the BSE International Convention Hall (Rotunda).
Experts and equity analysts say that huge volumes that the stock has clocked have been common in newly listed shares. According to market experts, selling by investors who subscribe for new issue on finance is one reason which causes this. Secondly, cheap finance has been partly responsible for heavy oversubscription to some of the recent public issues. NDTV's public issue, too, was heavily oversubscribed. The issue oversubscribed 36.58 times. The QIB portion was subscribed 12 times, the HNI portion 38 times and the retail portion 36 times.
On Wednesday, the scrip at a high and low of the day, traded at a premium of 78.36 per cent and 24.21 per cent respectively.
NDTV's public issue which was launched in Apirl was priced at the higher end of the Rs 63-70 band and was a combination of a fresh issue and offer for sale.
However, the competition is immense in the news channels segment with Aaj Tak, DD News, Star News, Zee News and Sahara Samay all vying for the Hindi space, and Headlines Today, BBC World, CNN and CNBC TV18 vying for the English space.
For the nine months ending December 2003, the company’s net loss (before extraordinary items) stood at a whopping Rs 46.57 crore on revenues of just Rs 44.09 crore.