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Shares of National Buildings Construction Corporation (NBCC) and MT Educare Ltd, which opened for trading today, witnessed contrasting response from investors.
While the shares of NBCC, a PSU undertaking, sank below the offer price, MT Educare hit the upper circuit in the exchanges.
This raised questions as to the fixing of NBCC’s share price by the GoM and whether oversubscription by a few times was an indication enough of investors’ appetite for a stock for the issuer to opt for the higher end of the price band.
The Union Government had set NBCC’s issue price at Rs 106 a share and the price band was Rs 90-106 a share.
The issue was subscribed 4.93 times, of which 4.74 times was at the top end of the price band. This made the GoI to fix the price at Rs 106, probably hoping that investors were comfortable with that.
On the NSE, the share never hit the upper end of the price band and till 11.15 am, it touched a high of Rs 101.
But for the retail investors the blow was cushioned by the fact that they got shares at Rs 100.70/share as there was a 5 per cent discount to the final issue price of NBCC.
In fact, the scrip opened at that price but was not able to hold on to it. It hit a low of Rs 95.95 before recovering to trade at Rs 98.05. The trading volume was about 6.23 lakh shares.
Investors’ attitude towards the scrip could be gauged from the fact that while there were buyers for 15,415 shares, there were sellers for 4.42 lakh shares on the NSE.
On the BSE, the share was trading at Rs 99.30 with a high of Rs 101. Trading volume was 7.55 lakh shares. Against buyers for 18,459 shares, there were sellers for 2.59 lakh shares.
MD Educare, on the other hand, enjoyed a better investor response and jumped 12.94 per cent or Rs 10.35 to trade at Rs 90.35 to hit the upper circuit on the NSE. The scrip opened at Rs 86.05, which was also the day’s low. While there were buyers for 3.71 lakh shares, there were no sellers.
On the BSE too, the share had buyers for 5.25 lakh shares with no sellers. The stock hit a high of Rs 90.35 and recorded a trading volume of 15.03 lakh shares.
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