4 IPOs rally up to 125% after subdued listing in 2017
PSP Projects, Eris Lifesciences, Tejas Networks and SIS have rallied by up to 125% against their issue price after making weak debut on the bourses during CY17.
 "4 IPOs rally up to 125% after subdued listing in 2017")
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PSP Projects, Eris Lifesciences, Tejas Networks and Security and Intelligence Services (India) (SIS) rallied up to 125% against their issue price after making a weak debut on the bourses during the calendar year 2017 (CY17).
Except Tejas Networks, which gained 2.5%, the market price of the remaining three companies remained below their respective issue prices on the first day of their listings.
The strong financial performance and positive corporate announcements led the rally in these stocks post their listings.
PSP Projects, the largest gainer among the pack, zoomed 125% against its issue price of Rs 210 per share. On Friday, the stock of construction & engineering company hit an intra-day high of Rs 490, its highest level since listing in May 29, 2017.
PSP Projects posted 88% year on year (YoY) growth in its net profit at Rs 26.17 crore in the first half (April to September) of the current financial year 2017-18 (H1FY18). It had reported profit of Rs 13.94 crore in the same period last fiscal 2016-17. Revenue from operations during period under review grew 80% to Rs 295 crore from Rs 164 crore in previous year. It has order book position of Rs 1,150 crore as on September 30, 2017.
Eris Lifesciences, engaged in the business of manufacturing and marketing branded formulations, was trading at Rs 797, 32% higher against its issue price of Rs 603 per share.
Since its listing on June 26, 2017, the stock has fallen below its IPO price and had hit a 52-week low of Rs 511 on August 10, 2017 in intra-day trade.
In past two weeks, it soared 35% after Eris Lifesciences announced acquisition of the domestic formulations business of Strides Shasun in an Rs 500-crore deal, marking its foray into the fast-growing central nervous system (CNS) segment. On Thursday, the stock hit a new high of Rs 831 on BSE in intra-day trade.
Tejas Networks was trading at Rs 414, 60% higher against its issue price of Rs 257 per share. The company more than doubled its net profit at Rs 47.31 crore in H1FY18, and registered 33.5% growth on revenues at Rs 415 crore (net of taxes and pass through component sales to contract manufacturers). EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved to 22% in H1FY18 from 17.3% in H1FY17.
SIS was quoting at Rs 1,109, up 36% against its issue price of Rs 815 per share. The company reported 171% YoY jumped in net profit at Rs 81 crore in H1FY18 on 34% growth in revenues at Rs 2,703 crore over H1FY17. EBITDA margin expanded 60 bps to 5.2% from 4.6%.
Except Tejas Networks, which gained 2.5%, the market price of the remaining three companies remained below their respective issue prices on the first day of their listings.
The strong financial performance and positive corporate announcements led the rally in these stocks post their listings.
PSP Projects, the largest gainer among the pack, zoomed 125% against its issue price of Rs 210 per share. On Friday, the stock of construction & engineering company hit an intra-day high of Rs 490, its highest level since listing in May 29, 2017.
PSP Projects posted 88% year on year (YoY) growth in its net profit at Rs 26.17 crore in the first half (April to September) of the current financial year 2017-18 (H1FY18). It had reported profit of Rs 13.94 crore in the same period last fiscal 2016-17. Revenue from operations during period under review grew 80% to Rs 295 crore from Rs 164 crore in previous year. It has order book position of Rs 1,150 crore as on September 30, 2017.
Eris Lifesciences, engaged in the business of manufacturing and marketing branded formulations, was trading at Rs 797, 32% higher against its issue price of Rs 603 per share.
Since its listing on June 26, 2017, the stock has fallen below its IPO price and had hit a 52-week low of Rs 511 on August 10, 2017 in intra-day trade.
In past two weeks, it soared 35% after Eris Lifesciences announced acquisition of the domestic formulations business of Strides Shasun in an Rs 500-crore deal, marking its foray into the fast-growing central nervous system (CNS) segment. On Thursday, the stock hit a new high of Rs 831 on BSE in intra-day trade.
Tejas Networks was trading at Rs 414, 60% higher against its issue price of Rs 257 per share. The company more than doubled its net profit at Rs 47.31 crore in H1FY18, and registered 33.5% growth on revenues at Rs 415 crore (net of taxes and pass through component sales to contract manufacturers). EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved to 22% in H1FY18 from 17.3% in H1FY17.
SIS was quoting at Rs 1,109, up 36% against its issue price of Rs 815 per share. The company reported 171% YoY jumped in net profit at Rs 81 crore in H1FY18 on 34% growth in revenues at Rs 2,703 crore over H1FY17. EBITDA margin expanded 60 bps to 5.2% from 4.6%.
| Company | Listing date | Issue price | Price* | Latest | % chg# | % chg$ |
| PSP Projects | 29/05/2017 | 210 | 209 | 473.3 | -0.5 | 125.4 |
| Tejas Networks | 27/06/2017 | 257 | 263 | 414 | 2.5 | 61.1 |
| SIS | 10/08/2017 | 815 | 757 | 1109 | -7.2 | 36.1 |
| ERIS Lifescience | 29/06/2017 | 603 | 601 | 796.6 | -0.3 | 32.1 |
| *Closing price on listing day | ||||||
| Latest price on BSE in Rs at 12:14 PM | ||||||
| # $ :change over issue price | ||||||
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