PDP Shipping & Projects, a company specializing in logistics and transportation services, had a rough start on the stock market. On its debut today on the BSE SME platform, shares opened at ₹108.25, which was 20% lower than the IPO price of ₹135. The stock quickly hit the 20% lower circuit limit, with its price dropping to ₹102.85, marking a significant loss for investors right from the start.
The company’s Initial Public Offering (IPO), which ran from March 10 to March 12, had a tepid response, undersubscribed by investors. The overall subscription was only 0.22 times the total shares on offer, with the retail segment showing some interest, subscribing 1.88 times, but the Non-Institutional Investors (NIIs) segment lagged behind, with only 0.14 times the available shares being bid for.
PDP Shipping & Projects, known for providing end-to-end logistics solutions such as multimodal transportation and customs clearance, had raised ₹12.65 crore from the IPO. This capital was aimed at funding long-term working capital needs and for general corporate purposes. However, despite this funding, the company’s market debut was far from what investors had hoped for.
As the stock continues to struggle on its first day of trading, many are questioning whether the company can turn things around. Investors who had placed their bets on the IPO are facing losses, and the performance on day one has left potential investors wary of the stock.
Given the weak debut, market experts are advising caution. It’s a reminder of the inherent risks involved in investing in newly listed companies, especially those that do not gain immediate investor confidence.
