The state-owned railways engineering and construction company was listed at Rs 422 a piece on NSE (National Stock Exchange), that is, at an 11.16 percent discount from its issue price of Rs 475 per share. On BSE (Bombay Stock Exchange), it was listed at Rs 410.30 per share, 13.62 percent lower from issue price.
IRCON International's IPO (initial public offering) worth Rs 467 crore was subscribed 9.77 times between its issue period of 17 and 19 September.
With business mainly focused on engineering and construction of railway infrastructure, IRCON has a strong book order and was looking to diversify. Brokers said that the IPO was fairly priced, which some said that its the nature of contracts could affect its financials.
IRCON was the second PSU listing in the stock exchanges after RITES, as a part of the government's disinvestment plans. The government had put 10 percent of its stake in the company for sale.
Garden Reach Shipbuilders and Engineer's IPO also saw a lukewarm response of 72 percent on the last day of its subscription. The issue is now extended to 1 October, as it failed to receive enough bids. Aavas Financiers Rs 1,734-crore IPO was subscribed 97 percent on its third day of bidding on Thursday.
Analysts suggest that the poor response was a result of the weakness in the secondary market seen lately, that has hurt investor sentiments.