VRL Logistics, a parcel delivery firm, made a stellar debut in stock markets on Thursday, rising more than 50 per cent within minutes of listing. VRL Logistics' initial public offer (IPO) was oversubscribed by more than 74 times earlier this month.
VRL Logistics shares were issued at Rs 205; the stock climbed to a high of Rs 309.10 and closed at Rs 293.30, up 43.07 per cent. In contrast, the broader Nifty ended 0.71 per cent lower.
Market analyst Avinnash Gorakssakar said VRL Logistics is likely to stablise around Rs 240. Given the strong outlook for the logistics sector, the stock is likely to do well over 1-2 years, he added.
Karnataka-based VRL Logistics competes with companies including Gati and Transport Corporation of India and is seen as a bet on India's booming e-commerce sector. VRL Logistics has a fleet of over 3,400 vehicles and employs some 15,000 people. It provides luxury bus service in Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat and Rajasthan.
VRL Logistics had hit the capital markets to raise over Rs 330 crore; the proceeds will be utilised for scaling up the company's existing fleet of goods transportation vehicles, repayment of loan and other general corporate purposes, the company said.
Subscription levels in VRL Logistics were the highest in nearly eight years. Previous record IPO subscriptions include those of Power Finance Corp, subscribed 77.2 times in 2007 and Reliance Power, subscribed 73 times in 2008.
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