INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Ircon International made a tepid debut on Friday, as the scrip got listed at Rs 410.30 on BSE, a 13.62 per cent discount to its
issue price of Rs 475, thanks to weak market sentiment
The Rs 467- crore issue, which ran from September 17 to September 19, was subscribed 9.77 times.
At the issue price, the stock commanded a
valuation of 10.9 times FY18 earnings against an average of 19.3 times for private road EPC players.
A weakness in the secondary market has
had a ruboff on investor sentiment
The state-owned Garden Reach Shipbuilders Engineers' initial public offer subscribing 72 per cent on the fourth day of bidding Thursday
The last day for the issue was extended till October 1 after the IPO failed to receive enough bids
The IPO by Aavas Financiers could only receive 97 per cent bids.
Analysts said that strong order book, which implies an order book-to-bill
ratio of 5.6 times on FY18 numbers, reflects earnings visibility, but a high concentration towards railways segment, any materialisation of
contingent liabilities and vigilance issues raised by statutory auditors, remained key concerns
Data showed that the order book of the company, which undertakes construction of roads, highways, bridges, tunnels, commercial and
residential properties, and development of industrial areas, swelled at a robust 12.9 per cent compounded annually to Rs 22,400 crore over
Around 87 per cent of these orders were secured from the Railways segment.
The largest PSU carrying out EPC projects in railways is trying
29 per cent over FY16-18 for the company, the brokerage noted.
