Shares of Vaswani Industries were hammered in its debut trade on the bourses,falling as much as 74 per cent below its issue price of Rs 49 per share in intra-day trade on Monday. The stock debuted at Rs 33.45 on the BSE and lost further ground,settling at Rs 17.75,down 63.77 per cent from its issue price. The company was listed on the bourses after nearly five months of its Rs 49-crore initial public offer,as it had come under the regulatory scanner after complaints of alleged irregularities and large-scale bid withdrawals in the IPO bidding process. The scrip plummeted by as much as 73.46 per cent to touch a low of Rs 13. On the NSE too,the scrip settled for the day at Rs 18.40,down 58.47 per cent from the issue price. Vaswani Industries is one of the major players in sponge iron,steel and power generation. The industry solely depends on revenues from power generation,estimated to be over 50 per cent of its total revenues. With a lot of negativism in the power sector,most banks have refused to sanction loans to the sector. Keeping the scenario in mind,I think,investors kept away from trading in the scrip, said an analyst.
