After weak listing, IRCON International closes 13% below IPO price
IRCON International, the railways engineering and construction firm, is one of the victim of current weak market conditions on Friday despite strong financials and healthy orderbook.
The stock price plunged 13 percent to close at Rs 412.95 on the National Stock Exchange against issue price of Rs 475.
After starting off day below IPO price at Rs 412, it hit an intraday high of Rs 465 and low of Rs 409.10.
On the BSE, the stock price opened at Rs 410.30, which was a day’s low, and closed at Rs 416.65, down 12.3 percent. The intraday high was at Rs 464.40.
The state-run company raised Rs 466-crore through public issue which was subscribed 9.9 times during September 17-19.
The IPO comprised an offer for sale of 99,05,157 equity shares by the government. It was a part of government’s divestment plan for FY19.
IRCON was the second CPSE to launch an IPO in the current fiscal, besides being the second railway PSU to be listed on the stock markets after RITES in June this year.
IRCON International is an integrated Indian 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.
IRCON has an order book of Rs 22,407 crore as of March 2018, which is 5.6 times of FY18 revenue.
Meanwhile, the Sensex fell 97 points today, taking total loss to more than 2,500 points in last one month.