This is the best first day gain in recent times.
The shares of Prakash Steelage rose 83.55 per cent on their debut at the stock exchanges on Wednesday. They finally settled at Rs 187.95 at the close of trade, up 70.86 per cent from the issue price of Rs 110 a share.
This is the best listing gain so far in the current financial year. With this, the company joins the list of the recently listed companies that have had an impressive rise on the first day of hitting the markets.
THE FATE OF RECENT LISTINGS
ON DAY 1
|*Closing price over issue price
The other company to record high listing gains was Aster Silicates, which closed 68.73 per cent up on day one. The scrip of the much-talked-about SKS Microfinance had gained 18 per cent on its debut before closing 10 per cent higher than the issue price (see table).
After Parabolic Drugs, all initial public offers have given investors gains on day one. Prakash Steelage is the seventh listing in a row that has made investors richer on the listing day itself.
As on date, except Aster Silicates, the five recent listings are trading above their issue price. These are Technofab Engineering, Hindustan Media Ventures, Midfield Industries, SKS Microfinance and Bajaj Corp.
On a day the markets saw lacklustre trading, the shares of Prakash Steelage, the manufacturer of stainless steel and welded pipes & tubes, opened at Rs 118.55 on the Bombay Stock Exchange (BSE) and continued the upward rally. Though they touched a low of Rs 117 in the initial trading, they went beyond Rs 200 and touched a high of Rs 201.90 around 3 pm.
The initial public offer (IPO) of Prakash Steelage was subscribed 4.53 times. The issue of 62.50 lakh shares was subscribed 10.91 times in the category reserved for high net worth individuals, while it was subscribed 6.62 times in the retail category.
The category reserved for qualified institutional buyers was subscribed 1.27 times. The company raised Rs 68.75 crore from the IPO.