There was a new listing today and with the market in the green, this listing too was at a premium. Prudent Corporate Advisory Services got listed on the BSE at Rs.660 v/s IPO price of Rs.630, a premium of almost 5%.
The IPO, timed during the sell-off in the secondary market, was not too well received, subscribing just 1.22x, with QIBs portion at 1.26x, Retail investors were better at 1.29x and HNIs was poor at 0.99x.
Majority of analysts were not gung-ho about the IPO, the main grouse being the aggressive pricing, which leaves very little on the table for the investors.
In our IPO Analysis, we had concluded - While company may be on a decent growth, pricing leaves nothing on the table, or is rather extremely aggressive. Hence, it is only prudent to ‘avoid’ the IPO.