July 29th, 2010
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Dear Readers,
It’s with a great sense of satisfaction that I look back at the last one year. I remember the idea of a website for the Primary market was being toyed about for quite some time, but somehow it just did not happen. One fine day last year in the middle of July when at a meeting we got stuck due to heavy rains, the final form of the website took place. Some views form and type of content was discussed and formalised. The next day the name was registered and the website took off in the last week of July 2009.
The first few issues were Adani Power, NHPC, L&T Finance NCD and Shriram Transport NCD issue. One thing led to another and another and in the first year the site had more than 400 plus articles. There is a weekly newsletter and issues concerning small investors have been raised at the right forum whether it is the stock exchanges or the regulator.
It is the endeavour of this website to post unbiased views on the primary market and give a fair analysis of issues hitting the markets. On entering the second year it is our resolve to continue to be unbiased, bold and to speak the truth irrespective of pulls and pressures that are there in everyday life.
Let me thank all of you my readers, because any website without you would be of no use. It makes me and my team happy at what we have achieved and look forward to your support and best wishes going forward.
Let me in conclusion once again thank each one of you and assure you of our best efforts in providing unbiased and timely information.
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July 29th, 2010
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Aster silicates which had made a public issue between the 24th and 28th of June in a price band of Rs 112-118 finally listed today. Readers would recall that Aster silicates which had 19 cases filed against it for cheque bouncing and had to give an exit option to investors to withdraw led to this inordinate delay in listing.
The listing was sedate but thereafter the volume, people going short and getting trapped so badly was all witnessed in one day. I believe looking at the track record of the company from the RHP (Red Herring Prospectus) and looking at the very first day’s trading this becomes a fit case of investigation by SEBI into what happened and “who done it”.
Coming to the actual listing the share opened at the BSE at Rs 127.70 and at Rs 128.05 on the NSE. The lows were Rs 123.50 and Rs 123.40 respectively. The highs were a staggering Rs 225 on the BSE and Rs 241.90 on the NSE. The closing prices were Rs 199.10 and Rs 205.55, a gain of more than 68% on the BSE and almost 75% on the NSE. This sharp rise was because people did not trust the numbers and felt that the price was too high and kept on shoring the share. Short sellers literally walked into a trap and were forced to cover their short sales at ridiculously high prices.
| Exchange |
Open |
High |
Low |
Close |
Net Change |
% gain |
Wt Avg |
Volume |
Delivery |
Del % age |
| BSE |
127.70 |
225.00 |
123.50 |
199.10 |
81.10 |
68.73 |
161.99 |
36484939 |
1512154 |
4.14 |
| NSE |
128.05 |
241.90 |
123.40 |
205.55 |
87.55 |
74.19 |
163.24 |
59469318 |
2622502 |
4.41 |
| Total |
|
|
|
|
|
|
|
95954257 |
4134656 |
4.31 |
Now let us have a look at the trading numbers. Total traded volume was a staggering 9.59 cr shares which was 21.3 times the IPO size of 45 lakh shares. This number is really huge and needs to be kept in perspective. Look at the delivery volume, naturally it cannot be very high as a percentage, but even then it was 4.31% of the traded volume. The interesting number now emerges as a percentage of issue size of 45 lakh shares the delivery is a staggering 91.88%. I believe this is a record by itself and probably one of the highest delivery percentage since this website has started.
Looking at the traded volume, the price rise, the difference between the high and then the close and the last traded price, I believe this is a share to be completely ignored. Trading in this share would make one not only lose money, but also make one confused about fundamentals, valuations etc. I believe this is also a fit case for investigation by BSE, NSE and SEBI.
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July 29th, 2010
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Bajaj Corp Limited today announced the price band for its IPO as Rs 630-660. The issue opens on Monday the 2nd of August and closes on Wednesday the 4th of August for QIB’s and on Thursday the 5th of August for other bidders. The issue size is 45 lac shares of Rs 5 each. The issue would raise Rs 283.5 crs at the lower band of Rs 630 and Rs 297 crs at the upper band of Rs 660.
Bajaj Corp sells product under license from Bajaj Sevashram Limited. The company sells hair oil and other FMCG products and its famous flagship product is Bajaj Almond Drops Hair oil.
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