Khadim India Limited – Poor debut, down over 8%

Shares of Khadim India Limited listed on the bourses and had a poor start to their listed life losing 8.20%. The company had tapped the capital markets with its simultaneous fresh issue for Rs 50 crs and an offer for sale of 65,74,093 shares. The price band was Rs 745-750. The company had allotted 21,72,227 equity shares to 13 anchor investors comprising of 17 entities.

The issue was subscribed 1.90 times overall with QIB portion subscribed 2.44 times, HNI undersubscribed 0.18 times and Retail subscribed 2.33 times. Very clearly the market did not like the valuations and hence the poor response from HNI’s who chose to avoid the issue.

The scrip opened at Rs 727 on the BSE and Rs 730 on the NSE. The high was Rs 740 and Rs 739.65 respectively while the low was Rs 677.30 and Rs 680.00 respectively. The share closed under pressure at Rs 688.50 on the BSE and Rs 688.85 on the NSE.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 727.00 740.00 677.30 688.50 -61.50 -8.20 711.40 530639 83840 15.80
NSE 730.00 739.65 680.00 688.85 -61.15 -8.15 713.88 2894418 550330 19.01
Total 3425057 634170 18.52

The traded volume was 34.25 lakh shares which as 47.30% of the IPO size of 72.40 lakh shares. The delivery volume was 6.34 lakh shares which was 18.52% of the traded volume and 8.76% of the IPO size. This means that even retail investors who had subscribed their portion have not been able to exit. There is more pressure on the share likely in the coming days. The weighted average for the days trade was Rs 711.40 on the BSE and Rs 713.38 on the NSE. This clearly shown that the share just cracked towards the end of the day.

There was just one trade which was reported in the form of Kiduja India Limited which bought 2 lac shares at a price of Rs 730. The net loss in the scrip on day one was Rs 61.50 or 8.20% on BSE and Rs 61.15 or 8.15% on the NSE. Clearly yet another case of over pricing by the exiting PE investor which has left the company and its shareholders down in the dumps. How long the share would take to come out of this mess is anybody’s guess.

New India Assurance Company Limited -Lists at a discount of over 9%

Shares of New India Assurance Company Limited debuted on the bourses and the listing result was poor. Shares which were issued at Rs 800 closed for trading at Rs 725.05 on the BSE, a loss of Rs 74.95 or 9.37%. On the NSE the closing price was Rs 727.10, a loss of Rs 72.10 or 9.11%.

The company had tapped the capital markets with its fresh issue of 2.4 cr shares and an offer for sale of 9.6 cr shares was fully subscribed. The price band was Rs 770-800 with a discount of Rs 30 for retail shareholders and eligible employees. The overall issue was subscribed 1.19 times with the bulk of the response coming from QIB’s. LIC OF INDIA was a big subscriber and helped in getting the issue through. Retail and HNI’s were wary of subscribing on the back of a poor listing of GIC RE. While QIB portion was subscribed 2.34 times, HNI portion was undersubscribed at 0.12 times and retail at 0.11 times. The employee quota was also undersubscribed at 0.21 times.

The share began trading at Rs 748.90 on the BSE and Rs 750 on the NSE. The high of the day was Rs 749 and RS 750 respectively. The lows were Rs 717.75 and Rs 717.40. The close of the day was Rs 725.05 on the BSE, a loss of Rs 74.95 or 9.37%. On NSE the close was Rs 727.10, a loss of Rs 72.90 or 9.11%.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 748.90 749.00 717.75 725.05 -74.95 -9.37 730.43 430055 53327 12.40
NSE 750.00 750.00 717.40 727.10 -72.90 -9.11 729.83 2539383 470125 18.51
Total 2969438 523452 17.63

The traded volume was 29.69 lakh shares which was a mere 2.47% of the IPO size. This being a PSU, there was no anchor investors. The delivery volume was 5.23 lakh shares which was 17.63% of the traded volume and a mere 0.44% of the IPO size. The IPO as mentioned earlier was undersubscribed in the non-institutional category and it can be clearly seen that whatever trading has happened is largely speculative in nature. The overall volume n the share was extremely pathetic and one does not remember such poor volumes on listing day in the near past. The weighted average of the day was Rs 730.43 on the BSE and Rs 729.83 on the NSE. The weighted average was higher than the close on both the exchanges indicating that there was selling pressure.

While the allotment price was Rs 800, retail and employees were given a discount of Rs 30 to the issue price. The spate of insurance companies which have collectively raised Rs 45,000 crs have killed the appetite for insurance company shares and also the market.

One hopes that the issue from HDFC Standard Life does not meet a similar fate.

Mahindra Logistics Limited -Listing day manages to stay afloat, closes up 15 paisa

Shares of Mahindra Logistics Limited listed on the bourses and ‘managed’ to stay above par on listing day. The company had tapped the capital markets with its fresh issue for 1,93,32,346 equity shares completed allocation to anchor investors.
mahindra-logistics-limited-issue-subscribedThe issue is in a price band of Rs 425-429. The company had earlier allotted 57,62,203 shares to 15 anchor investors comprising of 19 entities. The highest allocation of 5,36,112 shares or 9.30% has been made to four investors which include 2 FPI’s and 2 domestic funds.

The issue was subscribed overall 7.90 times with QIB portion subscribed 15.60 times. The HNI portion was subscribed 2.02 times while retail was subscribed 6.10 times. In terms of number of applications, the company received 10.04 lakh applications and the retail portion was subscribed 5.08 times in terms of lots.

The discovered price was Rs 432 on the BSE and Rs 429 on the NSE. The high of the day was Rs 433.95 on the BSE and Rs 433.85 on the NSE. The low as Rs 416.55 and Rs 416.10 respectively. The closing price was Rs 429.15 on the BSE, a gain of 15 paisa or 0.03%, while it was Rs 429.50, a gain of 50 paisa or 0.12% on the NSE.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 432.00 433.95 416.55 429.15 0.15 0.03 427.46 1499246 546219 36.43
NSE 429.00 433.85 416.10 429.50 0.50 0.12 426.81 10214458 4067537 39.82
Total 11713704 4313756 39.39

The traded volume was 117.13 lakh shares on the two exchanges combined. This was 60.59% of the IPO size of 193.32 lakh shares. Adjusting the same for non-anchor the traded volume was 86.32% of the IPO size. Delivery volume was 46.13 lakh shares which was 39.395 of the traded volume and 23.87% of the IPO size.

The weighted average of the days trade was Rs 427.46 on the BSE and Rs 426.81 on the NSE. With no funding there was no undue pressure on the share but the share did not return any profits for investors.

The last issue to list from the Mahindra stable was Mahindra Holidays way back in July 2009. Those shares were issued at Rs 300 and rose a little under 6% on listing day. Since the issue till date the company issued bonus shares in the current year in July 2017 in the ratio of one share for 2 shares held. The current price of Rs 342.50 means that the original share has appreciated from Rs 300 to Rs 513.75 in a little over eight years. I believe the returns are substandard and well below the returns of even the SENSEX which has almost doubled in the same period.

Poor listing and just about made the grade of not finishing below the issue price on listing day.

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