It was the first day of trading for the calendar year 2010. It was the first day of trading with earlier timings with trading starting at 9 am. It was the first listing of an issue in the New Year. It was a listing of a power generating company.

JSW Energy Limited listed at the BSE on Monday the 4th of January 2010. The company had issued 26.4 cr shares at Rs 100 to investors, with a discount of Rs 5 to retail investors. The company had also allotted 4.22 cr shares to anchor investors at a price of Rs 110. Through the issue the company had raised Rs 2700 crs.

The share listed at Rs 102 on the BSE and Rs 106 on the NSE. In the first half hour of trade the highs of 106.40 on the BSE and Rs 106.35 were made. Thereafter the share was under pressure throughout the day. The lows were Rs 99.90 on the BSE and Rs 100 on the NSE.

Retail participation in the share at IPO time was fairly muted and therefore selling pressure on the share should also not have been there. Yet of the total 11.15 cr shares traded, 4.23 cr shares or 37.93% of the traded volume was marked for delivery. This indicates a fairly high delivery percentage and particularly where investor interest was lacking this should not have happened. One other indication of weakness is the weighted average of the day’s trading which was at Rs 101.97 on the BSE while the close was at Rs 100.75. The last trade was at Rs 100.15. The gap between the average traded price and the traded price shows the selling pressure. Similarly on the NSE the weighted average was Rs 101.87 and the last traded price was Rs 100.20.

Very clearly the share is under pressure and will have to stage a recovery to survive slipping into negative territory. For the records, Adani Power had also similarly survived day one but went on to recover from there for the next few days before slipping.