Muthoot Finance listed in the stock exchange at Rs 180

Shares of Muthoot Finance, a non-banking finance company engaged into gold loan business, on Friday listed in the stock exchange at Rs 180, a premium of 2.85% to the initial public offer price of Rs 175. At 9.40 hours, it was however, trading at 175, up 1.40% on BSE.

Total traded volume was 49.62 crore. It hit a high of Rs 198 and low of Rs 170.25.

The IPO of Muthoot Finance ended on April 21, 2011, with a subscription of 24.55 times. The IPO received bids for 107.46 crore shares compared with 4.37 crore shares on offer. The company had fixed a price band of Rs. 160-175 for the IPO.

The company raised Rs 901.25 crore through the issue of 5.15 crore equity shares, which will be mainly used for augmenting capital base to meet future capital requirements to provide for funding of loans to customers.

Muthoot Finance list above Rs 200?

India's largest gold financing company Muthoot Finance is set to list its equity shares on Friday, May 6. It has fixed the issue price at the higher end of the price band of Rs 160-175 a share.

There were reports that the grey market premium for the stock is around Rs 25-30 over issue price.

Manish Bhatt of Prabhudas Lilladher looked optimistic while Investment Advisor SP Tulsian was slightly conservative. Bhatt expects Muthoot to list in Rs 200-250 range whereas Tulsian feels that the listing around Rs 190 per share.

But both experts advised profit booking on listing.Muthoot Finance raised Rs 901.25 crore through the issue, which will mainly be used for augmenting capital base to meet future capital requirements to provide for funding of loans to customers

How to approach market

Things are going from bad to worse on Dalal street. After a quiet first half, the markets went into a free fall mode, plunging through crucial support zones. The Nifty tested the 5,450 mark, before closing marginally above it. The Sensex cracked close to 260 points and closed at 18,210.

The 30-share BSE Sensex dropped 258.78 points or 1.40%, to close at 18,210.58 and the 50-share NSE Nifty closed below the 5500 mark for first time since March 23, down 77.30 points or 1.40% to 5,459.85.

Bear hug costs Sensex 1392 pts in 8 days

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Experts see earnings downgrade in the quarter ended June 2011 after the 50 basis points hike in repo and reverse repo rate. Interest cost of the companies will increase going ahead as banks have slowly been increasing their lending rates.

Shares & Securities feels that people basically want to sit on cash for a simple reason that there is a kind of possibility of earning downgrade happening going forward once this particular oil price hike is announced.

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Equity benchmarks were extremely choppy in early trade on Thursday - the Nifty was hovering around the 5550 level. Oil & gas, financial and capital goods companies' shares were supporting the markets. However, cement, healthcare, FMCG, telecom and select technology stocks were pulling the markets down.

Bharti Airtel plunged 4% as India's largest telecom operator has reported fourth quarter FY11 net profit of Rs 1,401 crore on consolidated basis as against street expectations of Rs 1,740 crore, up 7.5% versus Rs 1,303 crore on QoQ basis.

Ranbaxy Labs lost 8% in initial trade after Goldman Sachs said there would be potential fine of USD 1 billion to settle FDA charges relating to Lipitor.