Jaypee Infratech falls 12 pct on debut

On Thursday,Satluj Jal Vidyut Nigam had ended its market debut below offer price.

Jaypee,a unit of Jaiprakash Associates,had raised 500 million in an initial public offering that was 1.2 times covered and priced at the lower end of the Rs 102-117 per share range.

At 10:10 a.m.,the shares were trading at Rs 92.95,down 9 per cent,after having fallen as low as Rs 90 in the opening deals. The Sensex was down 1.2 per cent.

The stock was the second most actively traded on the Sensex,notching a volume of about 8 million shares.

Jaypee is developing a 165-kilometre,six-lane Yamuna Expressway in Uttar Pradesh at a cost of 2 billion,connecting Noida with the city of Agra,where the Taj Mahal is located.

The company plans to develop real estate of about 25 million square metres along the expressway.

Morgan Stanley India,Bank of America-Merrill Lynch,Axis Bank,Enam Securities,IDFC Capital,ICICI Securities,JM Financial,Kotak Mahindra Capital and SBI Capital Markets were managers to the issue.

Analysts expect the proceeds to rise to as much as 40 billion in 2010.