Closes 9.7% down – more pressure seen

Claris Lifesciences Limited listed on the BSE today where it had a listing ceremony as well. The listing price or opening price was Rs 224.40. This price was virtually the high for the first two hours of trade as would be visible from the chart appended below. The share after falling to levels of Rs 210 where there was some sort of support available, the share spurted with volume and touched a high of Rs 227.90 just a shade below the issue price and then in a narrow band till just around 3pm. It appears at this time all hell was let loose and the share simply crashed again with huge volume to make the low of the day at Rs 198.10. From here the share did recover some ground to close at Rs 205.85, a loss of Rs 22.15 or 9.71%.

The company had originally issued shares in a price band of Rs 278-293 and had also made an allocation of 18.43 lac shares to anchor investors at the top end of the price band of Rs 293. The issue failed to receive adequate response and the price band was reduced by the maximum 20% to Rs 228-233. The share managed to get subscribe and was priced at the lower end of the price band of Rs 228.

The total traded volume was 154.49 lacs which was 1.22 times the IPO size of 126.32 lac shares. The delivery volume was 31.47 lac shares which was 20.37% of the traded volume and 24.91% of the IPO size. The fall in price of over 9.7% compared to the delivery percentage of just about 25% indicated that the share is under pressure and could fall further. The weighted average of the day’s trade was Rs 215.60 which is well above the day’s close of Rs 205.85, indicating sustained selling pressure.

Amongst institutional activity, Copthall Mauritius bought 3.62 lac shares while Deutsche Securities sold 7.68 lac shares and Lakshmi Vilas Bank sold 6.20 lac shares.

Investors would do well to stay away from this share.