Shares of Naryana Hrudayalaya Limited (NH) listed on the BSE and NSE yesterday and were off to a flying start. The company had through a secondary offering sold 245.23 lac shares in price band of Rs 245-250. The anchor book was well received and 73.56 lac shares were allotted at the top end of the band. The issue was subscribed 8.70 times with QIB portion subscribed 24.43 times, HNI 3.62 times and Retail portion 1.89 times.

The price discovery was Rs 291 and this happened to be the low of the day. Between 10am and 10.30 am a huge volume of 143.75 lac shares on the NSE and 31.09 lac shares on the BSE were traded. This amounts to a total of 174.84 lac shares or 71% of the IPO size of 245.23 lac shares. Clearly it appears that people went short during this time and were forced to cover as well as the price continued to rise. The total volume at the end of the day was a staggering 503.35 lacs or 2.05 times the IPO size. The delivery volume was significant and quite high at 111.10 lacs or 22.07% of the traded volume. The percentage of delivery when compared to the issue size is 45.31% and when compared to the issue size minus the anchor allocation which has a 30 day lock-in, it’s a staggering 64.72%. This means that the entire retail and HNI portion plus some from QIB have sold. Looks unlikely as no names on either the buying side or the selling side have appeared in bulk trades reported on the BSE and NSE.

The weighted average for the day was 322.14 on the BSE and Rs 322.05 on the NSE. The share closed at Rs 336.70 on the BSE, a gain of Rs 86.70 or 34.68%. On the NSE the closing price was Rs 336.95, a gain of Rs 86.85 or 34.78%.

An excellent listing no doubt but the true test for the share would be post Friday when the auction for short shares on listing day is concluded. The way the share moves on Monday the 11th of January would determine future trends of NH.