CL Educate Limited – Issue Subscribed

The simultaneous offer with the fresh issue component of 21.80 lakh shares and an offer for sale of 25.80 lakh shares from CL Educate was subscribed. The price band was Rs 500-502. The issue was subscribed 1.90 times with the QIB portion subscribed 3.65 times, HNI undersubscribed at a mere 0.21 times and retail at 1.63 times. There were a total of 73,000 applications which means that the issue on number of lots was subscribed 1.33 times.

Earlier the company had allotted 14.28 lakh shares to nine anchor investors comprising of 17 entities. Four anchor investors each have been allotted 1,99,230 shares or 13.95% of the anchor portion.

Bucket Size Shares Applied for Times oversubscribed
QIB 952000 3470778 3.65
HNI 714000 150655 0.21
Retail 1666000 2713559 1.63
Total 3332000 6334992 1.90

The overall response to the issue was a low key on primarily two grounds. The first is that the company had entered into owning schools and a college which they have recognised as a folly and are in the process of disposing off. This has affected their returns from the capital employed perspective and is hurting the performance of the company and hence the valuations look extremely stretched. Second the last few companies that are in the sector and are listed have done quite badly and have not generated returns for the investors. This leads to a lack of interest in the sector and explains the poor response to the issue. One hopes that the sector and this company in particular does help restore confidence in education.

Superavenue Marts Limited – Debut day is a multi-bagger

Shares of Superavenue Marts Limited (D Mart) listed on the bourses and were off to a flyer. The company had issued shares to raise Rs 1,870 crs in a price and of Rs 295-299 which were very heavily subscribed. The company had allotted 1,87,62,541 equity shares to 35 anchors comprising of 58 entities at Rs 299. The issue was subscribed 104.59 times with QIB portion subscribed 144.62 times, HNI 277.74 times and retail 7.51 times. There were 18.5 lakh applications received which was a record with the previous best being BSE Limited about a month prior at just about 12 lakhs.

The shares listed at Rs 604.40 and Rs 600 respectively and then made their lows in the next 15-20 mins of Rs 558.75 and Rs 558.30. They then rose to new highs in the last hour of trade and closed strong at Rs 640.75 and Rs 641.60 respectively. The gains made were a massive Rs 341.75 or 114.30% on the BSE and Rs 342.60 or 114.58% on the NSE.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 604.40 650.00 558.75 640.75 341.75 114.30 608.20 14566653 3889245 26.70
NSE 600.00 648.90 558.50 641.60 342.60 114.58 607.17 85728445 25455640 29.69
Total 100295098 29344885 29.26

The total traded volume was a massive 10.03 cr shares which translates into 1.6 times the IPO size of 6.25 cr shares. If one looks at the same minus the anchor portion the turnover was 2.29 times the size. In terms of delivery the same was 29.34 lac shares which was 29.26% of the traded volume and 46.92% of the IPO size. Considering that anchors have a lock-in of 30 days the delivery percentage was 67.03% of the non-anchor portion.

In terms of institutional trades just one was reported with Nomura India Investment fund buying 32,33,983 shares at Rs 604.84 per share. The QIB has invested Rs 195.60 crs in this acquisition. The total traded value on the exchanges in D-Mart was Rs 6,091 crs. The IPO size was Rs 1,870 crs.

The weighted average of the day’s trade was well above double the issue price at Rs 608.20 and Rs 607.17. Such a dream listing does not happen now and then. It happens once in a lifetime.

Shankara Building Products Limited – Completes Anchor Allocation

Shankara Building Products Limited (Shankara) who is tapping the capital with its simultaneous offer to raise fresh equity of Rs 45 crs and an offer for sale of 65,21,740 equity shares completed allocation to anchor investors. The price band is Rs 440-460. The company allotted 22.5 lakh shares to 13 anchor investors comprising of 16 entities. The highest allocation was made to Franklin India and DSP Blackrock who were allocated 3,04,320 shares or 13.53% each.

The issue opens on Wednesday the 22nd of March and closes on Friday the 24th of March.

The full list of anchor allotment is given below.

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