PSP Projects made its debut on the BSE today at Rs.199, much below the IPO offer price of Rs.210. It slipped down further to Rs.189 levels but has since then recovered and is now at Rs.208 levels’ nevertheless continues below IPO price.
The IPO was subscribed 8.6 times with HNIs taking the giant share at 10.3 times and QIBs was at 8.3 times.
PSP Projects is a construction firm having completed 80 projects since its inception in August 2008, primarily in Gujarat, for clients such as GCS Medical College (Gujarat Cancer Society), Cadila Healthcare, Torrent Pharma, Care Institute of Medical Sciences, Claris, Emcure, Nirma, Sabarmati River Front Development Corporation, to name a few. Broad revenue split is 28% from institutional projects, 22% from industrial projects, 22% from government projects, 19% from government residential projects, and balance 9% from residential.
Our New Issue Analysis recommendation for the stock, “Pricing is not too cheap. Hence one can give the issue a miss. However, the company can be a promising stock and one must keep it on radar, gauging financial performance over the next couple of quarters.”