Stock Market News: First the stock fell 35%, then the stock got locked at 5% upper circuit

News Topical, Digital Desk : The company's shares saw a strong recovery on Thursday, October 9th. The company's shares were stuck in a 5% upper circuit and are trading at ₹90.9. This comes after the stock had shocked investors by 35% upon listing a day earlier. After listing at a discount to its IPO, buying interest is slowly returning to the stock.

Shares fell 35% on listing day
Om Freight Forwarders Ltd. shares had a weaker-than-expected debut on the stock market on Wednesday. The company's stock was listed at a heavy discount of ₹87.5-₹90 against the issue price of ₹135 and remained under pressure throughout the day. At the day's low, the stock fell to ₹81.5, a drop of almost 40%. However, the stock has recovered slightly on Thursday and is trading 5% higher at ₹90.9. Status of IPO – Investors were interested but the listing disappointed Om Freight Forwarders' ₹122.3 crore IPO was open from September 29 to October 3. The issue was subscribed 3.87 times overall – meaning investor interest was decent. NII (HNI) category 7.39 times subscription QIB (Institutional Investors) 3.97 times Retail Investors 2.75 times The company had fixed the price of the shares in the range of ₹128–₹135. Even before the IPO opened, the company had raised ₹15.9 crore from its anchor investors. Company's Business and Use of Funds Om Freight Forwarders is engaged in logistics and supply chain management. It provides cargo handling, transport and shipment solutions both domestically and internationally. Out of the funds raised from the IPO, the company will invest around ₹17.15 crore in capital expenditure (purchase of new vehicles and heavy equipment), while ₹4.08 crore will be kept for general corporate purposes.
 

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