It was a mixed bag day for the two new listings on Monday. Shares of state-owned Mazagon Dock Shipbuilders got listed at Rs 216, a 49 per cent premium to its issue price. The stock gave up some of its gains and ended the session at Rs 173, with a gain of 19 per cent.
On the other hand, shares of UTI Asset Management Company (AMC) listed at an 11 per cent discount to its issue price of Rs 554. The stock ended the session at Rs 476.6, with a decline of 14 per cent.
Market players said high net-worth individuals (HNIs) lost money in Mazagon IPO as the breakeven cost was 60 per cent more than the issue price. The initial public offering (IPO) of Mazgaon Dock was subscribed 157.4x, making it one of the most-subscribed PSU offering.
The government raised Rs 444 crore by divesting 15.2 per cent stake in the company. Mazgaon Dock is engaged in the construction and repair of warships and submarines for use by the Indian Navy and other vessels for commercial clients.
Mazgaon Dock is the only shipyard to have built destroyers and conventional submarines for the Indian Navy. Many analysts had recommended the stock to investors, citing attractive valuation, strong order book, and the government’s defence procurement policy. IRCTC and Cochin Shipyard are the other public sector companies which received a stellar response from investors for their initial public offers in the past few years.
Indices continue winning streak
Indices ended higher on Monday after the finance minister announced fresh stimulus measures. The Sensex ended 84.31 points, or 0.21 per cent higher, at 40,593.8. The Nifty rose 16.75 points or 0.14 per cent to close at 11,930.95. PTI
Mumbai outage hits bond trading
The massive power outage in Mumbai briefly hit trading volumes in the bond markets. On the other hand, BSE and the National Stock Exchange functioned normally. Trading volumes in the fixed-income market dropped as many traders, who were working from home, failed to complete trades. Later, volumes recovered after power supply was resumed.Agencies