MBL Infrastructure Limited listed yesterday on the bourses. The stock listed at Rs 190 on the BSE and Rs 185 on the NSE. The highs were Rs 218 and Rs 219.40 respectively. The lows were the respective openings. The share traded in a narrow range thereafter between Rs 203-209. The total traded volume was 1.37 cr shares or 2.4 times the IPO size of 57 lakh shares. Of the shares traded 15.15 lakh shares or 11.02% of the traded volume resulted in delivery. Yet another way of looking at this is that 26.57% of the shares offered in the IPO resulted in delivery.

Readers would recall that this share has been controversial from day one and was not recommended on this site. Thereafter it had to give an option to investors to withdraw their applications from the issue because of inadequate disclosures. I am of the firm belief that any company who does not disclose adequately at the time of public issue is certainly not going to take care of its minority shareholders once the money is in the bag. It is best that investors should even now avoid this share. The fact that the stock is up 14-15% on day one is no indication of good fundamentals.

Day one is over and the share has done reasonably well with necessary support. Its performance during the rest of the week will determine what is the public response to this offering?

MBL Infrastructure Limited (MBL) listed today on the bourses. The company had raised Rs 102 crs from the market in a price band of Rs 165-180 during 27th November to 2nd December 2009. The issue was subscribed under 2 times but was controversial.

The share opened at Rs 190 on the BSE and Rs 185 at the NSE. The highs were Rs 218 and Rs 219.40 respectively. After 80 minutes of trade, the share has slipped from the highs but is trading steady around Rs 205-206 which is a decent gain of about 14%.

Readers would recall that this company had to offer an option to withdraw to investors who had applied for the issue. A company which at the time of going public makes inadequate disclosures or does not come clean, is certainly not going to become forthright post having raised the capital. Even though the share is trading at a premium, I would recommend that this stock be avoided for investment.