Shares of Garden Reach Shipbuilders and Engineers Limited listed on the bourses and had a poor show. The company had tapped the capital markets with its offer for sale of of 292.10 lakh shares in a price band of Rs 115-118. There was a discount of Rs 5 per share for retail investors and eligible employees. The issue was open from Monday the 24th of September to Wednesday the 26th of September. The issue fell short in subscription and was extended to close on Monday the 1st of October and the price band revised to Rs 114-118.

The issue got subscribed with the help of institutional support at 1.02 times. The other segments or buckers continued to remain undersubscribed. QIB portion was subscribed 1.81 times while HNI was 0.31 times and Retail 0.24 times. Employee quota was subscribed 0.14 times.

Against the final allotment price of Rs 118, the discovered price was Rs 104 on the BSE and Rs 102.50 on the NSE. The low of the days were Rs 95.35 on BSE and Rs 95 on NSE while the highs were Rs 109.50 and Rs 109 respectively. The share closed at Rs 105.10, a loss of Rs 12.90 or 10.93% on BSE. On NSE the close was Rs 103.30, a loss of Rs 14.70 or 12.46%.

The traded volume was 36.44 lac shares against the IPO size of 292.10 lac shares or 12.47%. The delivery volume was 2.48 lac shares which was 6.83% of the traded price and 0.85% of the IPO size. This low delivery is a cause of concern as even retail and HNI’s combined were allotted over 37 lac shares. One does consider the fact that QIB’s were allotted the bulk of shares and would not sell at these low levels, yet the delivery percentage and volume was very low.

The weighted average of the day’s trade was Rs 104.80 on BSE and Rs 104.60 on NSE, around the closing prices. The share needs to see higher volumes and deliveries to take place before one can say that the worst is over. In conclusion this could be termed as a poor listing of yet another PSU share.