Shares of Alkem Laboratories Limited listed on the BSE and NSE and made a stunning debut. The company through a secondary offering had sold 128.53 lakh shares in a price band of Rs 1020-1050. The company had allotted 37.66 lac shares to 25 Anchor investors comprising of 47 entities at the top end of the price band at Rs 1,050.
The issue was well received and was subscribed an overall 44.29 times, with HNI’s subscribing their bucket 129.96 times. The issue was priced at Rs 1,050. The issue began trading with the discovered price of Rs 1,380. Thereafter it was in a narrow range with the high being Rs 1,410 and the low at Rs 1,355.40. The high made late in the afternoon and the low made in the morning were aberrations and the share traded throughout the day in a narrow range of Rs 1,370-1390. This kind of small range is uncharacteristic of issues in recent years. A share issued at Rs 1,050 and trading in a range of a mere 2% could be unheard of. The share at the end of the day had a weighted average of Rs 1,383.67 on the BSE and Rs 1,382.36 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 1380.00 | 1410.00 | 1355.40 | 1381.45 | 331.45 | 31.57 | 1383.67 | 2437867 | 993473 | 40.75 |
| NSE | 1380.00 | 1413.70 | 1356.20 | 1381.00 | 331.00 | 31.52 | 1382.36 | 10984341 | 3797088 | 34.57 |
| Total | 13422208 | 4790561 | 35.69 |
There were no names on the buying or selling side of the issue even though a total of 1.34 cr shares or 1.04 times the IPO size was traded. The delivery volume at 47.90 lac shares was 35.69% of the traded volume and 37.27% of the IPO size. If one considers the delivery percentage on the IPO size minus the anchor portion the same rises to 52.72%. This is a high delivery portion and very clearly it appears that shares have gone into stronger hands. The possibility that share price may rise higher exists.
A successful issue where even though the allotment was poor, there was money for all including the leveraged investor. The discovered price which was also the weighted average and the closing price was significantly higher than the grey market price of Rs 250-260. The share closed with gains of Rs 330 or 31%.
One prays that merchant bankers and promoters realise that a decent asking price gives a disproportionate rise in demand for the issue. The calendar year is coming to an end and this was probably the last listing with Dr Lal for the calendar year 2015.
