Jobaaj Stories
Udayshivakumar Infra Ltd. listed on Indian bourses today as the listing today was a disappointment for investors.
Udayshivakumar Infra Ltd. (USKIL) is a Karnataka based company which is involved in the construction of roads. It constructs State Highways, National Highways, Smart Roads, Local area roads and others. It has executed over 30 projects in and around the state of Karnataka.
The Rs 66 crores IPO saw great interest from investors. QIBs, who only had 10% of the IPO reserved for them, oversubscribed their portion 42.92x times! HNIs and RIIs followed suit as their portions were also oversubscribed 64.08x and 14.95x times respectively. This took the entire IPO to an oversubscription of 32.49x times!!
Due to the overwhelming response in the IPO and the 35% GMP persisting early this morning, analysts expected the stock to list at a 30-35% premium or at around Rs 47 per share.
However, contrary to analysts' expectations, the stock listed at a price of Rs 30 per share or a 14% discount! Slight increase in demand resulted in the stock seeing some movement, but the stock traded around Rs 31.50 per share by noon, down 10%.
Throughout the day, the stock did not see any other movement as it ultimately closed at Rs 31.50 per share, down 10%.
At market close, the stock ultimately closed at 10% down. An investment of Rs 14,980 per lot (428 shares X Rs 35) fell to Rs 13,482 (428 shares X Rs 31.50) after today's disappointing session.
- Aman Agarwal
