The stock of Patni Computer Systems Ltd displayed a dismal performance at its debut on the bourses, as it closed at Rs 233.20, a tad over its issue price at Rs 230. The stock witnessed bouts of volatility immediately after listing at a premium of 17 per cent at Rs 270 on Wednesday.During the course of the day, the stock touched an intra-day high of Rs 305 and came down sharply to the level of Rs 231.50. The stock of the country’s sixth largest software firm clocked volumes of about 60 lakh shares on the Bombay Stock Exchange (BSE).A dealer with a domestic brokerage said, “The performance of the software firm is proof of the fact that even the primary markets are not averse to risk. The performance of Patni is not due to any fundamental reason, but due to panic selling by those who participated in the IPO. The disappointment generated by the stock of software firm is also likely to spill over to the offers for sale of the six companies lined up by the government.” These stocks, except for CMC, fell in the range of 2-13 per cent on the bourses today.Earlier in the day, Narendra Patni, chairman and chief executive officer, Patni Computers, said at the listing ceremony that “the company will be focusing on expanding its services, enhancing its value proposition and moving up the value. The cash reserves from this IPO will help in achieving this”.Patni Computer’s initial public offering (IPO) was oversubscribed by 22 times. The 100 per cent book-built issue received maximum bids at the upper end of the price band of Rs 200-230 per share and majority of the retail bids came at the cut-off price.The IPO for 1.87 crore shares comprised fresh issue of 1.34 crore shares and an offer for sale of 53.24 lakh shares. The offer hit the market on January 27, closing on February 5, and constituted 15 per cent of the company’s fully diluted post-issue paid-up capital.Post-offer, the company’s equity capital is Rs 24.9 crore.
