Tuesday, June 13, 2006

Deccan Aviation shares dive a third on debut

Mumbai: Shares in Deccan Aviation Ltd. nosedived by a third on their debut on Monday as investors baulked at the discount airline's valuation of 0.8 times forecast sales.
The disappointing start could make it difficult for other new offerings in the pipeline, analysts said.
Deccan's stock fell as low as 97.05 rupees on Monday after starting 22 percent below the IPO price of 148 rupees a share. It closed at 98.85 rupees, down 33.2 percent from the IPO price.
The low-cost carrier has had a bumpy ride since starting a scheduled service in 2003. The day its IPO opened for subscription in May the stock market tumbled more than 800 points.
Deccan initially set a price band of 150-175 rupees a share for the IPO but cut it to 146-175 rupees because of poor demand as a result of stock market turbulence.
13/06/06 M.C. Govardhana Rangan/Reuters
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