Security & Intelligent Services (India) Limited – Great debut but poor finish

Shares of Security & Intelligent Services (India) Limited (SIS) listed on the debut at Rs 875 at the BSE and Rs 879.80 on the NSE against an issue price of Rs 815. Unfortunately the story ended there and it was virtually a one way street thereafter and only downwards. The share touched a low of Rs 749 on the BSE and Rs 748.80 on the NSE before closing at Rs 756.70 on the BSE and Rs 757.05 on the NSE.

The company had tapped the capital markets with its simultaneous offer which consisted of a fresh issue of Rs 362.25 crs and an offer for sale of 51.2 lakh shares in a price band of Rs 805-815. The issue looked expensive and the subscription in the HNI category was poor being subscribed under 2 times.

The company had allotted 43.04 lakh shares to 18 anchor investors comprising of 30 entities. Domestic mutual funds were allotted 20.24 lakh shares which was just under half the total anchor allocation. The issue opened well and had made gains of Rs 60-64 at the discovered price. There was one bulk trade reported in all on the NSE which happened at the discovered price of Rs 879.80 for 5 lac shares. Thereafter the price after holding steady just kept on slipping. The end of the day was panic and though the stock closed around Rs 756-758 the weighted average was significantly higher at Rs 824.69 on the BSE and Rs 833.92 on the NSE.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 875.00 878.00 749.00 756.70 -58.30 -7.15 824.69 1319728 157330 11.92
NSE 879.80 879.80 758.00 757.05 -57.95 -7.11 833.92 8025978 2006120 25.00
Total 9345706 2163450 23.15

All in all while the listing was good without doubt the finish or the closing was indeed poor. For the records this would go down as one more issue which closed below the issue price on listing day and add to the tally of the merchant bankers on the negative side. If only pricing became more rational. Amen!

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