Pennar Engineered Building Systems locked at lower circuit on debut

The stock locked in lower circuit of 5% at Rs 169.10 on the NSE against its issue price of Rs 178 per share.

Shares of Pennar Engineered Building Systems (PEBS) have locked in lower circuit of 5% at Rs 169.10 on the National Stock Exchange (NSE) after listing at par against its issue price. It opened at Rs 177.95, against its issue price of Rs 178 per share on the NSE.

Till 10:02 AM, around 303,000 shares changed hands and there were pending sell orders for 42,834 shares on the NSE. The stock is listed under ‘T’ group of securities.

The company that has raised Rs 156 crore through initial public offer (IPO) got a lukewarm response. The issue was subscribed 1.25 times with total bids for 8.78 million shares received compared with 10.94 million equity shares on offer. The retail portion was subscribed by just 0.39 times. The company had priced the IPO at the top end of the Rs 170 to Rs 178 per share.

Pennar Engineered Building Systems, a subsidiary of Pennar Industries (manufacturer of engineering products), is a custom designed building systems solutions provider. Its capabilities include designing, manufacturing, supply and assembly of custom designed building systems.

The issue proceeds will be used for repayment in full or part of certain working capital facilities; financing the procurement of infrastructure (including software and hardware) for the expansion of design and engineering services; and general corporate purposes.