Shares of the engineering procurement and construction (EPC contractor) company VKS Projects started off trade at Rs 55.80 on the BSE that was tad higher over the issue price of Rs 55 a share.
Immediately after the opening, the stock fell below the issue price, hitting a lower circuit of Rs 53.05.
The company had launched its public offer during June 29-July 4 and managed to get fully subscribed on final day.
VKS Projects is engaged in the business of undertaking EPC contracts of CS/SS/alloy steel turnkey piping, civil land development, industrial / commercial infra projects, structural fabrication and erection of equipments, fire fighting projects and commissioning of chemical plants.
The proceeds raised through this Rs 55-crore public issue are proposed to be deployed to meet long-term working capital requirements besides financing the procurement of construction equipment and key machineries and the setting up of engineering design studio/office and training centre in Chennai, Cochin, Delhi, Hyderabad and Ahmedabad.