Jaypee Infratech Ltd., a unit of India's biggest builder of dams, fell as much as 11.8 percent below its initial offer price in its Mumbai trading debut.
The shares, which started trading at 92 rupees, fell 10 percent to 91.8 rupees as of 2:37 p.m. local time. They touched 90 rupees earlier versus the offer price of 102 rupees apiece.
The Noida, Uttar Pradesh-based company sold 16.5 billion rupees ($352 million) worth of new shares and parent Jaiprakash Associates Ltd. sold 60 million shares. Retail investors got shares at 5 percent discount, according to Jaypee.
The builder of highways, industrial and residential complexes will use the proceeds to part finance an expressway by the river Yamuna that will connect the cities of Greater Noida and Agra and five townships along the way. The company will earn revenue from collecting toll for 36 years and developing real estate, Chairman Manoj Gaur said in Mumbai earlier this month.
Indian construction companies and property developers, including Reliance Infratel Ltd., Lodha Developers Ltd., Prestige Estates Projects Ltd., Sahara Prime City Ltd., Emmar MGF Land Ltd. and Ambience Ltd. have sought regulatory approval to sell shares for the first time.
To contact the reporter on this story: Paresh Jatakia in Mumbai at pareshj@bloomberg.
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