Analysis and Insights into the world of IPOs and investing in India

Monday, May 9, 2011

Paramount Printpackaging IPO crashes on listing day, closes 24% below Issue Price on BSE

Paramount Printpackaging Ltd., which listed on the exchanges today, closed 24% below its issue price. Paramount Printpackaging Ltd. opened on the BSE at its Issue Price under the IPO at Rs.35/- per share and also did manage to maintain a marginal premium on the Issue Price during the first half of the trade. However post 2PM, it crumbled under heavy selling pressure and even touched Rs.24.60 as its Intra-day low, before closing the listing day at Rs.26.65

Paramount Printpackaging Ltd. most certainly disappointed listing gainers with the share never going beyond Rs.37.50, which was the Intra-day high price on the BSE. The price band for the 13,094,175 Equity Shares of Rs.10/- each offered under the IPO was set at Rs.32/- to Rs.35/- per equity share with a minimum order quantity or the bid lot of 150 Equity Shares and in multiples thereof

It is worthwhile to recall that although the overall subscription figure of the IPO was around 4 times, the IPO was subscribed only 0.33 times in the QIB category, while the Retail Category was oversubscribed by a startling 9.31 times. With such a bleak participation from the QIB Investors, and somewhat moderate subscription from HNI category, such high retail participation was quite an anomaly
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