 "Ircon International settles 13% below its issue price on debut")
Shares of engineering and construction firm Ircon International settled weak on its debut on Friday.
The stock got listed at Rs 412, 13 per cent below its issue price of Rs 475 per share on the National Stock Exchange (NSE). It settled at Rs 412.95.
The stock hit a high of Rs 465 and a low of Rs 409 on the NSE in intra-day trade today.
The company offered a discount of Rs 10 per equity share on the offer price to retail individual bidders and eligible employees bidding.
Ircon International had raised Rs 4.7 billion through initial public offer (IPO). The issue ran between September 17 and 19 and was subscribed nearly 10 times.
The support to the issue has been largely from qualified institutional buyers (QIBs) and retail investors, whose reserved portion subscribed by 12.29 times and 10.07 times followed by non-institutional investors (4.92 times).
Ircon is the second railway PSU to be listed on the stock markets after RITES in June this year. Ircon International is a state-owned engineering and construction company, specialising in major infrastructure projects, including, railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, EHV sub-stations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities.
“On valuation front, at higher price band, the company is demanding a P/E valuation of 10.9x (to its restated FY18 EPS of Rs. 43.8). Moreover, based on FY19 and FY20 earnings, the forward P/E comes out to 9.9x and 8.4x, respectively. Thus issue seems to be attractively priced considering its strategic importance in the Indian Railway, future growth outlook, limited competition, virtually debt free operations and healthy financial performance,” Choice Broking had said in an IPO note.
The stock got listed at Rs 412, 13 per cent below its issue price of Rs 475 per share on the National Stock Exchange (NSE). It settled at Rs 412.95.
The stock hit a high of Rs 465 and a low of Rs 409 on the NSE in intra-day trade today.
The company offered a discount of Rs 10 per equity share on the offer price to retail individual bidders and eligible employees bidding.
Ircon International had raised Rs 4.7 billion through initial public offer (IPO). The issue ran between September 17 and 19 and was subscribed nearly 10 times.
The support to the issue has been largely from qualified institutional buyers (QIBs) and retail investors, whose reserved portion subscribed by 12.29 times and 10.07 times followed by non-institutional investors (4.92 times).
Ircon is the second railway PSU to be listed on the stock markets after RITES in June this year. Ircon International is a state-owned engineering and construction company, specialising in major infrastructure projects, including, railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, EHV sub-stations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities.
“On valuation front, at higher price band, the company is demanding a P/E valuation of 10.9x (to its restated FY18 EPS of Rs. 43.8). Moreover, based on FY19 and FY20 earnings, the forward P/E comes out to 9.9x and 8.4x, respectively. Thus issue seems to be attractively priced considering its strategic importance in the Indian Railway, future growth outlook, limited competition, virtually debt free operations and healthy financial performance,” Choice Broking had said in an IPO note.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%