Orbit Corp traded at a premium of Rs 127.90 on the first day

Mumbai, Apr 12 (UNI) Real estate developer Orbit Corporation today traded at a premium of Rs 127.90 on the first day in the opening session at the Bombay Stock Exchange (BSE), compared to the issue price of Rs 110 per share.

The shares listed at a discount of Rs 90, on BSE. The scrip's high and low for the day is Rs 136.80 and Rs 90 respectively, a leading broker said.

The counter clocked high early volumes of 22.61 lakh shares on BSE in the morning session today.

The price band for the initial public offer(IPO) was between Rs 108 and Rs 117, but was later fixed as Rs 110. Face value per share is Rs 10. The IPO was subscribed nearly 4 times.

Orbit Corporation primarily redevelops projects in Mumbai. The company was initially incorporated to carry out e-commerce business, and called Orbit Cybertech.

Orbit Corporation is currently implementing 16 upmarket projects at premium locations. The estimated free sale area for these projects is 6,85,327 sq ft. Besides, the company has successfully bid at Rs 333 crore, for Gujarat Ambuja Cements' approximately 8,763.7 square meters of land at Kalina, Santacruz, North East Mumbai.

Meanwhile, Company Chairman Mr Ravi Aggarwal told UNI at the sideline of the Company's Equity and Warrants on the ceremony held here this morning at BSE,'' The main objective of the recently concluded IPO was to finance advances for acquisition of new projects and development of existing projects as well as to invest in wholly-owned subsidiaries''.

Orbit Corporation had also voluntarily opted for IPO grading from Credit Rating Information Services of India (CARE). It had received IPO Grade 1, indicating poor fundamentals. The low grade was primarily due to the short track record and low corporate governance, he added.

UNI