Pipavav Shipyard closes below public issue price on Day 1

The shares of Pipavav Shipyard made a muted debut on the stock exchanges on Friday. Though it opened with a premium of 5.34 per cent at Rs 61.10 over its issue price of Rs 58 on the NSE, it closed at Rs 57, before touching an intra-day low of Rs 53.85.
Analysts said that the opening was along expected lines but the stock slipped as the market sentiment was generally bearish.
“Within next six months, once the orders start flowing in the stock would perform much better,” said Mr Kapil Yadav, shipping analyst with Dolat Capital.
On Friday, the market was generally down with BSE Sensex closing 1.19 per cent or 200.88 points below the previous close.
The company’s order book is worth Rs 4,500 crore for 34 ships which include 22 Panamax size huge dry bulk carriers for three foreign shipping companies and 12 OSVs (Offshore Supply Vessels) for ONGC. Pipavav Shipyard has already bid for tenders worth Rs 7,500 crore from Indian Navy.
Mr Nikhil Gandhi, Chairman, Pipavav Shipyard, said, “We are in the process of bidding for some projects of national and international defence agencies.”
Pipavav IPO was subscribed 8.24 times. The price band for the issue was fixed at Rs 55-60.
The retail portion of the issue was subscribed only three times, while the qualified institutional buyers’ portion was subscribed 10.63 times and the high networth individual (HNI) portion was subscribed 14.80 times.