It’s time to take stock of the recent IPO’s that became open for subscription recently.Overall, the stock markets have been range bound but the IPO frenzy is pretty much on.Even though the latest IPO’s did not manage to rake up phenomenal interest like that of DQ Entertainment IPO, we still saw some decent interest in a few IPO’s.
Pradip Overseas IPO which opened for subscription on March 11 has managed to close after getting subscribed 14 times.The figures may not be exceptional but given the investors neglect towards the Textile Industry in the recent past and a possible currency valuation risk, Pradip Overseas managed to do rather well.Interestingly here , the Retail portion was subscribed close to 11 times which suggests that the stock might be able to maintain a good premium on day 1 of listing.
IL&FS Transportation networks IPO also managed to draw investors in large numbers.IL&FS with its $154 Mn IPO offer got good response from the market and the IPO subscribed 33 times.
With a huge push on Infrastructure specially by the government, it however does not surprise that IL&FS managed to oversubscribe 33 times.IL&FS primarily works in the infrastructure sector and provides consulting and advisory services for infrastructure related projects.
NMDC Nosedives after Listing
No surprises here too.NMDC FPO had failure written all over it.The NMDC FPO had a timid response during subscription and had to be bailed out by the likes of SBI, LIC.But, even that could not help NMDC save its face on the first day of listing in the secondary markets.The NMDC shares fell as much as 5% during the day’s trade after the listing.
The scrip, which opened on a weak note at Rs 342.30, ended the trade at Rs 344.60, down by 4.99 per cent over its last close on the on the Bombay Stock Exchange.
The markets had ditched the FPO offering from the very beginning and the government seems to have its foot in the mouth with the aggressive disinvestment plan