Mahindra Logistics has made a very weak debut on the stock exchanges today; though it got listed at a slight premium over the IPO price, it has not been able to sustain there and is now trading below the issue price.
The stock, on the BSE, got listed at Rs.432 v/s IPO price of Rs.429, a premium of less than 1% and soon slipped to Rs.416 levels. It recovered from there but remains, at least now, below the issue price.
The issue was subscribed 7.9 times of which qualified institutional buyers (QIB) put in the lions share at 15.6 times; retail investors subscribed more than the HNIs at 6.1 times v/s 2.07 times respectively.
In our New Issue Analysis, we had labelled as ‘expensive’ and had stated, “Historic growth and scalability due to asset light business model support the stock. But low margin business, intense competitive pressures, poor show of group companies and high asking price do not leave much for the prospective investors. On lack of compelling proposing, the issue can be given a miss.