Tree House Education & Accessories saw a lacklustre debut on the bourses on Friday as the stock closed nearly 12 per cent below listing price amid weak market conditions. The 30-share BSE Sensex lost 297.50 points, or 1.8 per cent, to close at 15848.83.
On the National Stock Exchange, Tree House shares closed at Rs 119.30 against the issue price of Rs 135. On BSE, it ended at Rs 116.55, down 13.66 per cent from the issue price.
The stock opened weak but recovered the lost ground soon after and surged nearly 20 per cent over issue price to touch a high of Rs 161.50 on BSE. Market analysts attributed the fall to the overall weakness in the market.
More than 2 crore shares of the company were traded on BSE and over 2.93 crore on NSE. The IPO was subscribed 1.85 times during the offer period which ended on August 12. The IPO received bids for 1.32 crore shares compared with 71.67 lakh shares on offer. The price band for the IPO was Rs 135-153 a share. The company offered a discount of Rs 6 per share to retail investors on the final issue price.
Maximum bids were received at the lowest end of the price band at Rs 135. Anchor investors' portion was also subscribed at the same price. The qualified institutional buyers, non-institutional investors and retail investors portions of the issue were subscribed 1.02 times, 1.68 times and 2.76 times, respectively.
Tree House has 223 pre-schools under its brand name 'Tree House' across 33 cities in India. The company aims to raise more than Rs 110 crore through the issue. The company intends to utilise the IPO proceeds for expansion of pre-school business; acquisition of office space; procurement of exclusivity rights to provide educational services; construction of infrastructure for educational complexes in Rajasthan and Gujarat; and repayment of loan. Ratings firm Crisil had assigned 'Grade 3' to the company's IPO, indicating average fundamentals.
On the National Stock Exchange, Tree House shares closed at Rs 119.30 against the issue price of Rs 135. On BSE, it ended at Rs 116.55, down 13.66 per cent from the issue price.
The stock opened weak but recovered the lost ground soon after and surged nearly 20 per cent over issue price to touch a high of Rs 161.50 on BSE. Market analysts attributed the fall to the overall weakness in the market.
More than 2 crore shares of the company were traded on BSE and over 2.93 crore on NSE. The IPO was subscribed 1.85 times during the offer period which ended on August 12. The IPO received bids for 1.32 crore shares compared with 71.67 lakh shares on offer. The price band for the IPO was Rs 135-153 a share. The company offered a discount of Rs 6 per share to retail investors on the final issue price.
Maximum bids were received at the lowest end of the price band at Rs 135. Anchor investors' portion was also subscribed at the same price. The qualified institutional buyers, non-institutional investors and retail investors portions of the issue were subscribed 1.02 times, 1.68 times and 2.76 times, respectively.
Tree House has 223 pre-schools under its brand name 'Tree House' across 33 cities in India. The company aims to raise more than Rs 110 crore through the issue. The company intends to utilise the IPO proceeds for expansion of pre-school business; acquisition of office space; procurement of exclusivity rights to provide educational services; construction of infrastructure for educational complexes in Rajasthan and Gujarat; and repayment of loan. Ratings firm Crisil had assigned 'Grade 3' to the company's IPO, indicating average fundamentals.
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