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The issue saw applications for 2,13,13,120 shares so far against the total size of 1,21,09,166 shares, meaning a subscription of 1.76 times. It was fully subscribed on Wednesday.

Goldman Sachs said in a report that because Evergrande has dollar bonds issued by both the parent company and a special purpose vehicle, recoveries in a potential restructuring could differ between the two sets of bonds, and any potential restructuring process may be prolonged.

A total of 103,333 shares changed hands on the counter till 01:19PM (IST)

“We need the market to stand on a strong foundation because if it keeps going up, it will be supported by a lot of weak investors and then the more you let it go up, the bigger the crash will be. So, a good 10-15% kind of a correction would be really welcome.”

The stock quoted a 52-week high price of Rs 32050.0 and a 52-week low of Rs 18214.4.

Promoters held 48.76 per cent stake in the company as of 30-Jun-2021, while FII and DII ownership stood at 23.7 per cent and 9.03 per cent, respectively.

On the technical charts, the 200-day moving average of the stock stood at Rs 206.99.

In the dollar bond market, Evergrande accounts for 4% of Chinese real estate high-yields, according to DBS. Any defaults will also trigger sell-offs in the high-yield credit market. A collapse of Evergrande will have a large impact on the job market. It has 200,000 staff and hires 3.8 million people every year for project developments.

As of 30-Jun-2021, promoters held 55.99 per cent stake in the company, while FIIs held 17.35 per cent and domestic institutional investors had 13.19 per cent.

A retreat for the Nifty, trading at about 35% above its historical trend level, would reduce GDP by 1.4% in the same quarter of the shock and by 3.8% over the following year, Ankur Shukla, an economist with Bloomberg Economics, wrote in a separate note.