InvestorQ : How was the IPO listing of Mazagon Docks and UTI AMC on 12 October, Monday?
Tisha Malhotra made post

How was the IPO listing of Mazagon Docks and UTI AMC on 12 October, Monday?

Answer
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Aashna Tripathi answered.
2 weeks ago


Mazagon Docks opened for trading at a premium of 49% above its IPO price and that was more or less evident from the grey market pricing and the demand for the stock during the IPO, where it saw oversubscription of nearly 160 times.

However, the stock did see selling pressure after the initial enthusiasm. Against the IPO price of Rs.145, the stock listed at Rs.214. However, after touching an intraday high of Rs.216.95, the stock fell closer to the Rs.170 levels. Around close, the stock is just about 17% above its IPO price.

It may be recollected that Mazagon got an enthusiastic oversubscription of 157 times with the HNI segment seeing over 650 time subscription. Most investors were attracted by its 6X P/E ratio and its Rs.52,000 crore order book position.

UTI was a study in contrast. Against the IPO issue price of Rs.554, UTI listed nearly 10% lower at Rs.500. However, after briefly jumping to Rs.530 levels, the stock fell vertically back to the 475 levels. At around close it was trading at Rs.475, a discount of 14.3% to IPO price.

Clearly UTI AMC has been the disappointed but that was already evident in the tepid response to the IPO as well as to the grey market pricing of the stock, which was at a discount all through.