Shares of CARE Limited listed on the BSE and NSE today. A colourful ceremony was held at the BSE which was well attended. The company had issued shares in a price band of Rs 700-750 and was oversubscribed 40.98 times. The allotment price was Rs 750 and all successful applicants in the retail category were allotted the minimum lot of 20m shares by way of lottery. The lottery was 40% or 2 out of five applicants were successful.
The pre-open call auction saw the price being discovered at the BSE of Rs 949 and on the NSE at Rs 940. Within 10 minutes of listing the share had made the low of the day and then recovered to make the high of the day. The share has yet to stabilise and it would be some time before it does. I would be interesting to see where the share closes and what the delivery percentage is at the end of the day. HNI investors who had leveraged themselves for applying for the shares have not been at the receiving end as has happened in many issues. The HNI portion was subscribed 111 times and at 9% interest for 9 days the cost per share per time was Rs 1.66. Considering the oversubscription, the cost per successful share was Rs 184.26 or Rs 934.26. This means that leveraged HNI has received an exit route so far.
| Exchange | Open | High | Low | Close | Net Change | %Gain/Loss | Wt. Avg | Volume |
| BSE | 949.00 | 986.20 | 896.20 | 927.00 | 177.00 | 23.60 | 937.24 | 3503934 |
| NSE | 940.00 | 985.00 | 895.00 | 927.20 | 177.20 | 23.63 | 935.31 | 7058041 |
| Total | 10561975 |
In the first two hours of trade a total of 105.61 lac shares or 1.46 times the IPO size of 71.99 lac shares has been traded. The current price is Rs 928 which is a premium of Rs 178 or 23.6% over the issue price of Rs 750. Weighted average of the day’s trade so far is Rs 937.24 on the BSE and Rs 935.31 on the NSE. The share has begun well and as they well begun is half done.
