Shares of PSU Ircon International Limited listed on the bourses and in keeping with the market mood had a poor start. The company had tapped the capital markets with its offer for sale of 99,05,157 shares in a price band of Rs 470-475 with a discount of Rs 10 to eligible retail investors and employees. The issue was open from Monday the 17th of September to Wednesday the 19th of September. The issue was subscribed 9.90 times with QIB portion subscribed 12.29 times, HNI portion 4.92 times and Retail 10.07 times. There were 9.18 lac application which meant that the retail portion on basis of applications was subscribed 8.37 times.

The company had a listing ceremony at the BSE. The discovered price was Rs 410.30 on the BSE and Rs 412 on the NSE. From these levels the share recovered sharply and tried to get closer to the issue price but failed. The high of the day was Rs 464.40 on the BSE and Rs 465 on the NSE. From here on the share was under pressure and closed virtually at the lower levels, quite close to the opening levels. The share closed at Rs 416.65 on the BSE, a loss of Rs 58.35 or 12.28%. On the NSE, the closing was Rs 415.30, a loss of Rs 59.70 or 12.57%.

The volume on the two exchanges combined was 64.31 lac shares which was 64.93% of the IPO size. Delivery volume was 17.15 lac shares which was 26.67% of the traded volume and 17.32% of the IPO size. In government companies there is no anchor investment hence, there was no non-anchor portion to differentiate.

The weighted average of the day was Rs 437.16, and Rs 436.73 on NSE. This was significantly lower than the closing price indicating that the share was under pressure throughout the day.

While the company has its fundamentals in place, it did not fare well on the bourses on listing and has lost significant ground. Certainly no one can blame the pricing as the issue was very well subscribed. For the records, it would be yet another issue which bit the dust on day one.