Shares of Bharat Wire Ropes listed on the bourses on Friday and managed to hold on above the issue price of Rs 45. The company had tapped the capital markets with its primary offering to raise Rs 70 crs in a price band of Rs 40-45. The issue had received decent support and the QIB portion was just about subscribed with there being one FII.
The issue listed at a premium and the discovered price was calculated in a manner to ensure that even if the share closed at the lower circuit it just about remained near the issue price. The discovered price on the BSE was Rs 47.35 while it was Rs 47.25 on the NSE. The high of the day was the discovered price on the NSE while it was marginally higher on the BSE at Rs 47.50. Trading for the share was in trade to trade mode and the total traded volume on the two exchanges combined was 61.67 lakh shares which is a staggering 40% of the issue size of 155.55 lakh shares.
Bulk trade details suggest that there was one FII which sold. Cresta Fund sold 5,84,298 shares at Rs 47.25 on the NSE. Besides this there were no other sellers whose name appeared in bulk trade. On the buying side there were six entities on the NSE and two entities on the BSE who together bought 39.95 lakh shares.

From the table above it is clear that the share was under pressure and there was induced buying support, as a result of which the share closed above par at Rs 45.40 on the BSE and Rs 45.55 on the NSE. The weighted average was Rs 46.25 on the BSE and Rs 46.39 on the NSE. The bulk of the trade happened in the first half hour of trade and thereafter the volumes were on the decline.
The funds have been raised for setting up a state of the art wire and wire ropes manufacturing facility at Chalisgaon in Maharashtra. The management feels that the project would be commissioned by December 2016. Till then there are no drivers for this company and it would be interesting to see how the entities who have supported the share on day one exit.