It was a day of mixed bag as two state-run companies got listed at the bourses on Wednesday; one at a discount and another at a premium. While manganese ore miner MOIL rose 23.8%,Shipping Corporation of India (SCI) scrip declined 5.3% compared to their respective issue prices.
The stock of MOIL opened 51% higher to Rs 565 compared to its issue price of Rs 375 per share. Within minutes, the scrip scaled to an intra-day high of Rs 590 but soon started to lose steam due to a weaker secondary market and fell to its day?s low of Rs 456.65. The stock finally closed at Rs 464.20, up Rs 89.20 or 23.79% on the National Stock Exchange (NSE).
Meanwhile, SCI, whose new share sales also got listed on Wednesday, disappointed investors with its share prices closing at Rs 132.6, or 5.28% lower compared to its issue price. The scrip touched a high of Rs 139 and a low of Rs 132.25. SCI had sold shares to investors at Rs 140 apiece through a follow-on public offering (FPO) earlier this month. Retail investors were given shares at Rs 133, 5% discount to the issue price.
MOIL, which was the top traded stock on the NSE on Wednesday, clocked a turnover of Rs 4,978 crore on both the exchanges. Meanwhile, the SCI counter witnessed relatively lower turnover of just Rs 122 crore. The Rs 1,260 crore MOIL offering generated over 55 times more demand than the shares on offer, while SCI FPO, which mopped up about Rs 1,150 crore from investors witnessed subscription of almost 5 times.
Both the government offerings, which took place after the retail investment limit in IPOs was doubled to Rs 2 lakh, had seen good response from retail investors.
MOIL, which saw retail applications to the tune of 13 lakh, was subscribed more than 32 times in the retail category.
The high net-worth individual (HNI) category was subscribed 143.3 times, while the institutional portion was subscribed 49.16 times. Meanwhile, the SCI FPO, which attracted over 3 lakh retail applications, saw 6.56 times subscription in the retail category, 3.67 times in HNI and 4.19 in the institutional portion.
Both the share sales were part of the government’s disinvestment program to raise Rs 40,000 crore in the ongoing fiscal. The center has so far mopped up about Rs 22,000 crore through the disinvestments in SJVN, Engineers India, Coal India, Power Grid, MOIL and SCI.