Share shows strength but very high volumes and deliveries cause for concern.
Thinksoft Global services Limited listed on the NSE and the BSE yesterday. This company had the dubious distinction of not being subscribed and having to extend its closing date and reducing the price as well. It was only after this that the issue was subscribed.
At the end of the day it has set up two more records and they are the highest turnover to shares issued and highest delivery percentage of shares offered. Thinksoft had offered a total of 36.46 lakh shares by way of an offer for sale and fresh issue combined. The total traded volume yesterday as visible from the table appended below shows that a total of 4.417 cr shares or 12.12 times the issued capital were traded on day one. The second dubious distinction is that of the total shares traded 26.68 lakh shares or 6.04% of the traded shares were delivered on day one. This delivery of 26.68 lakh shares when compared to the shares offered in the IPO comes to a staggering 73.18%.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 100.00 | 172.00 | 100.00 | 164.30 | 39.30 | 31.44 | 153.76 | 17924873 | 1244795 | 6.94 |
| NSE | 126.00 | 169.80 | 126.00 | 164.40 | 39.40 | 31.52 | 155.33 | 26247157 | 1423372 | 5.42 |
| Total | 44172030 | 2668167 | 6.04 |
The last issue which was listed was Euro Multivision and in that case the traded volume was 4.91 times the shares offered and the delivery percentage was 66.5% with one difference, that share crashed, Thinksoft has gained.
The share opened at the BSE at Rs 100 and on the NSE at Rs 126, which were the respective lows as well. The shares have risen thereafter in an almost non-stop fashion. The highs made were Rs 172 and Rs 169.80 respectively. The share closed at Rs 164.30 and Rs 164.40 respectively. The net gain on day one was an impressive 31.5%.
It is interesting that just four persons were allotted 8,72,064 shares or 23.92% of the shares offered in the IPO. No details of who has bought or sold these shares is apparent but one would tend to believe that facts like issue not being subscribed, issue seeing huge turnover and extremely high delivery to issued shares and the fact that almost one fourth the shares allotted are to just four individuals – all point to the share being an ideal target for market manipulations.
Investors looking at trying to make a quick buck would do well to stay away from such a share.
