Pennar Engineered debuts at LC

Pennar Industries’ 54% subsidiary, Pennar Engineered Building Systems, got listed at Rs. 177.95 per share on NSE and at Rs. 150 on BSE, this morning at 10 am, vis-a-vis issue price of Rs. 178. However, immediately upon opening, the share price hit 5% lower circuit on NSE, with price breaching the lower filter of Rs. 169.10.

The share has hit lower circuit on very thin volumes. While 5.75 lakh shares have changed hands on both the exchanges so far (of which 5.5 lakh on NSE), the counter has sellers worth 4.75 lakh shares on NSE currently. BSE counter for this stock is quite illiquid with outstanding buyers of 51,000 shares.

The IPO for company’s 88 lakh shares worth Rs. 156 crore barely sailed through in the market turmoil. It was subscribed just 1.15 times, on an overall basis, with retail portion being under-subscribed to just 0.41% of the shares reserved for the category. Institutional and HNI portion were subscribed 2.2 times and 1.44 times respectively.

This is the third successive IPO listing to happen at a discount to the issue price, earlier two being Power Mech and Navkar Corp.