Shares of Healthcare Global Enterprises Limited (HCG) listed on the bourses yesterday. The company had tapped the capital markets with its IPO which consisted of a primary offering of 116 lakh shares and a secondary offering of 182 lakh shares in a price band of Rs 205-218. The company had allotted shares to 11 anchor investors comprising of 13 entities at the top end of the price band at Rs 218.
The response from QIB’s saw the QIB bucket oversubscribed 2.36 times while the HNI and retail remained undersubscribed at 0.43 times and 0.83 times respectively. The overall issue was subscribed 1.56 times.
The share listed below the allotted price at around Rs 211 and saw a slide in value virtually through the day. The low of the day was Rs 169 on the BSE and Rs 169.10 on the NSE. The weighted average was substantially higher than the close of Rs 171 at Rs 182.58 on the BSE and Rs 182.33 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 221.00 | 211.00 | 169.00 | 170.95 | -47.05 | -21.58 | 182.58 | 2886401 | 474450 | 16.44 |
| NSE | 210.20 | 211.90 | 169.10 | 171.00 | -47.00 | -21.56 | 182.33 | 11075297 | 2408419 | 21.75 |
| Total | 13961698 | 2882869 | 20.65 |
Two institutional investors have sold on the day of listing and added to the carnage that happened. Goldman Sachs sold 6,99,714 shares at an average of 183.39 while Morgan Stanley sold 4,43,060 shares at an average of Rs 182.52. the combined total of these two entities is almost 40% of the delivery volume of the day. The total traded volume at 139.6 lakh shares was a mere .47 times the IPO size of 298 lakh shares. The delivery volume of 28.8 lakh shares was 20.65% of the traded volume and a mere 9.67% of the IPO. The damage that this has caused to the price was substantial with the share closing at Rs 171, a loss of Rs 47 or 21% to the issue price of Rs 218.
Disappointing start for the company and there needs to be introspection on what went wrong.
