Shares of Divine Power Energy soared 284% on the first day of trading, as investors swooned

Shares of cable and wire manufacturing company Divine Power Energy Limited (DPEL) had a great launch in the market on Tuesday. The stock closed with a jump of over 284 percent against the issue price of Rs 40.

Shares of the company were listed at Rs 155 on the NSE SME platform Emerge, representing an increase of 287.50 percent from the issue price. It closed at Rs 150 at the end of the trade.

The issue was subscribed 394 times

The market value of the company at the end of the trading session was Rs 322.01 crore. 31.44 lakh shares of the company were traded on Emerge during the day. Divine Power Energy Ltd's IPO was oversubscribed 394 times on the last day of issue last week.

The company's Rs 22.76 crore IPO was entirely based on 56.90 lakh new shares. The price range for this was fixed at Rs 36-40 per share. DPEL plans to use Rs 18 crore from the proceeds of the IPO to meet its working capital requirements and the balance for general operations of the company.

Allied Blenders closed up 13 percent

Shares of Allied Blenders and Distillers, maker of Officer's Choice whiskey, traded at Rs. 281 closed with a gain of over 13 percent against the issue price. Shares of the company on BSE are trading at Rs. 318.10, which was 13.20 percent higher than the issue price. Later it increased by 15.44 percent to Rs. 324.40. Finally it increased by 13.11 percent to Rs. It closed at 317.85. Shares of the company surged 13.87 percent on the NSE at Rs. 320 were listed. It closed at Rs 317 with an increase of 12.81 percent at the end of trading.

Both the recent IPOs have made investors rich. Both the IPOs were listed at a premium which was well received by investors.

Disclaimer:  Do not invest in stock market without knowledge. Before investing in any shares you should talk to your financial advisor once. If you do not do so, you may suffer financial loss.