PSP Projects gains 5% to hit upper circuit after poor debut on Monday

The stock trading at Rs 219.35, above its issue price of Rs 210 per share.

PSP Projects is locked in upper circuit of 5% at Rs 219.35, trading above its issue price of Rs 210 per share, after making a poor debut on the bourses on Monday.

The stock of a construction firm had made a tepid debut at Rs 199 on the BSE, a 5.5% discount against its issue price.  It finally settled at Rs 208.95, after hitting an intra-day low of Rs 189 on Monday.

On the National Stock Exchange (NSE), the stock was trading 5% higher at Rs 209.45, still quoting below its issue price. It listed at Rs 190, finally settled at Rs 199.50 yesterday.

A combined 359,845 shares changed hands on the counter and there were pending buy orders for 481,538 shares on BSE and NSE at 02:45 pm.

The construction firm PSP Projects had raised Rs 212 crore through initial public offering (IPO), which was oversubscribed 8.58 times. The qualified institutional buyers' (QIBs) portion oversubscribed 8.38 times, non institutional investors oversubscribed 10.39 times and retail investor’s portion 6.47 times, according to data available with the BSE.

Proceeds from the fresh issue will be utilised towards funding working capital requirements and for general corporate purposes.

PSP Projects is a multidisciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects in India.