Endurance Technologies Limited –Great Debut – gains 37%

Shares of Endurance Technologies Limited listed on the BSE and NSE and were off to a flying start. The company had come to the markets with its offer for sale of 2.46 cr shares in a price band of Rs 467-472. Endurance had received excellent response in the subscription with the issue being oversubscribed 43.84 times. The QIB portion was subscribed 53.43 times, HNI 127.07 times and Retail 2.69 times. The company had earlier allotted 73.8 lakh shares to 24 Anchor investors comprising of 38 entities.

The price discovery of shares was done at Rs 570 on the BSE and Rs 572 on the NSE. The share price was on an uptrend throughout the day and shares closed at Rs 647.70 on the BSE and Rs 646.90 on the NSE, a gain of Rs 175.70 or 37.22% and Rs 174.90 or 37.06% respectively.

Exchange Open High Low Close Net Change % Gain/loss Wt. Avg Volume Delivery Del %age
BSE 570.00 655.00 570.00 647.70 175.70 37.22 607.18 8141059 2256723 27.72
NSE 572.00 654.40 572.00 646.90 174.90 37.06 606.82 36506028 9318499 25.53
Total               44647087 11575222 25.93

From the table above one can see that the share reported brisk volume and saw a combined traded volume of 446.47 lakh shares which was 1.81 times the IPO size of 246.13 lakh shares. The delivery volume 607.was 115.75 lakh shares which was 25.93% of the traded volume and a massive 47.03% of the IPO size. This effectively means that by and large the retail and HNI portion has been delivered on day one.

The weighted average of the day was Rs 607.18 on BSE and Rs 606.82 on the NSE. There was one institutional trade reported which saw Smallcap World Fund buying 13.1 lakh shares at an average price of Rs 602.45.selling shareholder got hisn

The issue has done extremely well. There is one more thing that investors should remember this share for. This company was to go public in 2010, but the issue was cancelled/withdrawn because the selling shareholder got his exit by selling the entire stake to another investor. This issue provided an exit to that investor, effectively being an issue which has provided back to back exits for two investors over a long period of time.

A great debut for an issue which had received excellent support from all buckets in the subscription stage.

Wait for Diwali fireworks to be over

It was a three day trading week and markets were battered. The reason which is not palatable was the minutes of the Fed meeting that rate increase is almost likely in the next meeting. How does it matter if rates which are at unsustainable base of a mere 25 basis points are doubled? If India and its markets have the potential to grow would a 25 basis points really matter?
The BSESENSEX lost 387.54 points or 1.38% to close at 27,673.60 points while NIFTY lost 114.20 points or 1.31% to close at 8,583.40 points. Results from TCS and Infosys saw TCS margins improving and revenue dipping while Infosys reduced guidance for the remaining half of the year. In an otherwise weak markets these shares held themselves and BSEIT actually gained 0.72%.
The long awaited deal of Essar Oil has finally been done. The Essar group has sold almost all of the refinery and Vadinar Port to a group of three investors led by Rosenoft. The entire deal is worth about Rs 86,000 crs and includes taking over of existing debt as well. Two good things would happen as a result of this deal. Firstly the Indian banking system starved of funds would get about Rs 50,000 as repayment and second the shareholders of Essar Oil would get some more money for the shares held in Essar Oil.
Results season has begun and companies declaring results would be in focus going forward. Markets have lost their momentum in the crack last week and would need to consolidate before the next up move could begin.
One should use rallies to exit na d wait for better opportunities to re-enter the market post Diwali and result season.

Performance of Newly Listed Shares as on 14th October 2016

Name Date of listing Issue Price closing price closing price % gain loss change over
14th October 7th October over week lssue price
Dilip Buildcon Limited 11th August 219.00 226.80 234.65 -3.58 3.56
S P Apparels Limited 12th August 268.00 329.80 336.00 -2.31 23.06
RBL Bank Limited 31st August 225.00 314.75 308.35 2.84 39.89
L&T Technology Services Limited 23rd September 860.00 847.00 832.50 1.69 -1.59
GNA Axles Limited 26th September 207.00 250.10 266.40 -7.87 20.82
ICICI Prudential Life Insurance Co Ltd 29th September 334.00 326.65 317.05 2.87 -2.20
HPL Electric & Power Limited 4th October 202.00 173.95 177.90 -1.96 -13.89
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