Shares of PFC Infratech Limited listed on the bourses on Tuesday the 26th of May. The debut day was not too good for the company or for those shareholders who decided to apply for shares and wanted an exit on day one. The discovered price was Rs 381 a premium of Rs 3 to the issue price of Rs 378. The price band was Rs 355-378 and the issue was priced at the top end of the band. The issue was oversubscribed on the basis of response from QIB’s while retail and HNI portion remained undersubscribed.
The share after the discovered price drifted down to about Rs 368 which was a discount of Rs 10 to the issue price by about 1.45 pm. Thereafter there was some mini panic in the share and the low of the day of Rs 346.30 was touched. The share recovered from these lows to close at a much more respectable Rs 360.20 on the BSE and Rs 360.50 on the NSE. Net loss for the day was Rs 17.80 or 4.71% on the BSE and RS 17.50 or 4.63% on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 381.00 | 387.80 | 346.30 | 360.20 | -17.80 | -4.71 | 371.44 | 1011752 | 306581 | 30.30 |
| NSE | 387.00 | 387.00 | 346.40 | 360.50 | -17.50 | -4.63 | 374.87 | 3467507 | 1299864 | 37.49 |
| Total | 4479259 | 1606445 | 35.86 |
Delivery volume for the day was 16.06 lac shares on a traded volume of 44.79 lac shares which corresponds to a very healthy 35.86%. What one interprets from this is a that people who were trading were more interested in delivery based and seeing the share drift were on the sell and then buy mode rather than buy and then sell mode. As a percentage of the issue size of 129.21 lacs the delivery percentage was 12.43%. Considering that the same is not very high and allotment to retail and HNI’s who are supposed to be the weak link in an issue was a total of 23.82 lac shares, it appears that the price fall and delivery has been pressed by institutional investors.
PNC Infratech is the 7th IPO to list in the last two months and is the 5th which is trading below par. Just two IPO’s namely Inox Wind and VRL Logistics are trading above issue price and they are at a hefty premium to issue price with gains of over 35% each. The pricing of issues continues to be a contentious issue and it appears merchant bankers are unwilling to bite the bullet as far as fair pricing is concerned.
In conclusion one more IPO makes its debut and trades at a discount at end of day trading. With a mere 12% of issue size delivered future course the share price will take depends on who blinks; the seller or a prospective buyer.
