There were two new listings today, both Govt of which one got listed at a discount and one at a premium.
UTI AMC got a tepid listing. As against the IPO price of Rs.554, it got listed at Rs.490.25 on the BSE.
The IPO had got a poor response, subscribing 2.31 times with retail investors portion getting subscribed 2.32 times, institutional at 3.34 times and HNIs was at 0.93 times.
In our New Issue Analysis, we had concluded, “Despite industry tailwinds, UTI AMC faces declining market share and weak profitability with no immediate rebound visible. Thus, citing weak fundamentals, the issue is an ‘avoid’.”
The second listing, Mazagon Dockyard was a bumper one – as against the IPO price of Rs.145, it got listed at Rs.216,45 but after that, it has now slipped to Rs.186 levels, nevertheless, still at a premium to the IPO price.
This IPO had generated a fantastic response, getting subscribed 157 times, with HNIs portion taking the lions share at 678.88 times, institutional at 89.71 times and retail at 35.63 times.
In our New Issue Analysis, we had concluded, “Pricing of the issue is not demanding, and those looking at listing gains may apply in the IPO, although stock does not qualify as a portfolio stock.”