Recent initial public offerings (IPOs) have been a mixed bag for investors, especially for those who look forward to make a quick buck on listing. Those who waited for a couple of days, hoping for a sustained rally, have been disappointed while uncertainty keeps others on tenterhooks.
Cochin Shipyard IPO ends on Thursday amid low-key response till Wednesday (yesterday). The public sector undertaking's public issue was subscribed three times till Day 2, with the retail portion getting a slightly-better response, at four times.
Cochin Shipyard is tapping the capital market with Rs 1,468-crore public offer offering shares in the price band of Rs 424-432 per share. The likely listing price needs to be seen in the trend witnessed in recent listings, of Central Depository Services (India) Limited, or CSDL, AU Small Finance Bank and Eris Lifesciences.
CDSL, who's IPO was subscribed 170 times, gave phenomenal returns when it listed at Rs 250 on June 30, as against the issue price of Rs 149 per share and crossed Rs 400 in a short span. But it has consistently shed gains since then and is now hovering around Rs 339 (August 3, at around 1.40 am), far below from its high of Rs 486.
AU Small Finance Bank was an equally good performer on listing, debuting at 47 percent premium to its issue price of Rs 358 on July 10 and reaching a high of Rs 724 in the next couple of sessions, only to see a sharp correction in the subsequent days; the stock is now trading at Rs 582.
The small finance bank, which got a licence to operate as one from the Reserve Bank of India last December, saw its IPO subscribed 54 times.
Eris Lifesciences was trading at Rs 584 on Thursday on the BSE, below its issue price of Rs 603 and listing at a modest 1.3 percent premium to its issue price. The public issue was subscribed three times after it closed on June 20.
The BSE Sensex was trading 126 points lower at 32,350 at around 11 am; top losers were State Bank of India, Tata Steel, Adani Ports and Axis Bank while stocks there were trading with gains included Lupin, Powergrid Corporation and TCS.