Shares of Garden Reach Shipbuilders and Engineers Ltd fell on their market debut on Wednesday after the company raised Rs 340 crore ($45.81 million) at its initial public offering earlier this month.

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The company's stock dropped as much as 12.9 percent to Rs 102.80 in early trade, but later rose to Rs 107, or down 9.32 percent, at 0432 GMT versus its issue price of Rs 118.

Garden Reach's IPO received an underwhelming response from investors because of risk-aversion in the secondary market. The government had to extend the subscription window by three days due to a tepid response from the investors.

The broader Nifty index was up 1 percent.

The IPO of the state-owned shipbuilders was covered 1.02 times at its close.

(With inputs from Reuters)