IRB Infra Investment Trust shares fell in its trading debut on Thursday.
This could potentially dampen enthusiasm for similar listings of high-yield securities that are looking to tap investors' appetite for stronger returns.
At about 11.10 am, the IRB InvIT Fund was trading down 0.61 per cent at Rs 101.38 on the NSE in a negative market. The Nifty was trading down 0.73 per cent or 69.20 at 9,456.55.
IRB InvIT shares had gained as much as 2.9 per cent to Rs 105 shortly after opening against its Rs 102 initial public offering price.
The fund, which owns, operates and maintains a portfolio of six toll-road assets, raised $782 million in an IPO that was oversubscribed and priced at the top of expectations.
The performance of the fund, which was priced to yield 12 per cent a year, will be closely watched by other issuers looking to raise at least $1.3 billion in similar deals this year.
Infrastructure investment trusts and real estate investment trusts (REITs) are entities that invest in rent-yielding assets and distribute most of their income to shareholders as dividends.
IRB InvIT Fund was the largest of a series of InvITs expected to tap Indian equity markets in coming months, including Reliance Infrastructure InvIT fund's $388 million deal, India Grid Trust's $350 million, and others from MEP Infrastructure Developers and IL&FS Transportation InvITs.
The IPO was subscribed 8.6 times. Investors including Singapore government entities bought shares of IRB InvIT in the anchor portion of the sale.