PTC Financial Services issue scratches through …just!

PTC Financial Services a co promoted by PSU Entities under PPL has just scratched through its IPO.

Here are the stats

Sr.No. Category No.of shares offered/reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 54845000 156520750 2.85
1(a) Foreign Institutional Investors (FIIs) 36753500
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 108356500
1(c) Mutual Funds 11410750
1(d) Others 0
2 Non Institutional Investors 23505000 5077500 0.22
2(a) Corporates 3466000
2(b) Individuals (Other than RIIs) 1611500
2(c) Others 0
3 Retail Individual Investors (RIIs) 54845000 64558750 1.18
3(a) Cut Off 52303250
3(b) Price Bids 12255500

From the table it is clear that the QIB portion has found support from govt entities … maybe thanks to a push or nudge from fin. ministry.
There is hardly any interest from large Non Institutional Investors and HNIs. The pre-IPO valuation of PFS is quite high at 30x P/E,15x P/B and 15x P/S.The company has much higher valuation compared to its listed peer REC and PTC. I wonder how the Govts CCI would value this issue…

People who have subscribed might get full subscription and this issue might just go under. I suspect it will not hold above the 26 mark for long and face the same treatment its
PSU promotersĀ  have faced in recent past.


One thought on “PTC Financial Services issue scratches through …just!

  1. Lists with a loss

    PTC India Financial Services as shares traded below the issue price on first day itself. It tumbled 11.43%, to close at Rs 24.80 as against issue price of Rs 28 a share, after hitting an intra-day high of Rs 27 and low of Rs 23.5 on the National Stock Exchange.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s