Tara Jewels Limited which had tapped the capital markets with its IPO to raiser Rs 179.5 crs in a price band of Rs 225-230 listed today at the BSE and NSE. There was a listing ceremony at the BSE. The company had issued a total of 78,04,348 Equity shares which included an anchor allocation of 11,58,945 equity shares.
The issue was subscribed 1.97 times overall with the highest response coming from the HNI’s or Non-institutional investors segment. The QIB portion was subscribed 1.49 times.
Coming to the actual listing of the share itself the price discovery in the call auction period was discovered at Rs 242 which corresponds to the grey market premium of Rs12 mentioned yesterday and the issue price of Rs 230 added together. As the issue size was lower than Rs 250 crs the circuit filter is fixed at 5% of the discovered price which coincides with the issue price at Rs 229.95 on the BSE and Rs 229.90 on the NSE respectively.
| Exchange | Open | High | Low | Close | Net Change | % Gain/Loss | Volume | Wt. Avg |
| BSE | 242.00 | 244.90 | 229.95 | 229.95 | -0.05 | -0.02 | 461183 | 237.86 |
| NSE | 242.00 | 242.00 | 229.90 | 229.90 | -0.10 | -0.04 | 460271 | 236.7 |
| Total | 921454 |
From the table above one find’s that the discovered price and the initial high made on the BSE of Rs 244.90 was made in the opening moments itself. Thereafter the stock has been sliding continuously until it hit the lower circuit on both the exchanges. The total traded value in the first two hours of trade on the two exchanges combined is 9.21 lac shares which is 11.80% of the IPO size. It may also be noted that in the period 11am to 12noon a mere 845 shares on the BSE and 3,687 shares on the NSE have been traded. This total of 4,532 shares is pathetic and speaks of the quality of the issue and its merchant bankers. The issue was overpriced and did not leave anything on the table for its investors.
Going forward there would be a significant impact on the IPO of P C Jeweller which is tapping the capital markets with its issue for 4.51 cr shares in a price band of Rs 125-135. The issue would garner marginally higher than Rs 600 crs at the upper band and would be open between the 10th and 12th of December. If Tara Jewels continues to flounder as is happening today, this would be significantly negative for P C Jeweller.
One more issue bites the dust on day one. One hopes that merchant bankers realise that there has to be value left on the table for investors….. not on paper as grey market premiums vanish as quickly as they come.
