Shares of Snowman Logistics Limited listed on the NSE and BSE on Friday and were off to a superb start. The issue was for 3.25 cr shares and were issued at Rs 47. The issue was subscribed a massive 60 times and allotment in the retail segment was by way of lottery with roughly one applicant being successful out of 18. The surprising thing is that the system of allotment in retail of one lot to all eligible applicants has been prevalent for quite some time, yet investors have applied for the full amount permissible in the retail bucket of Rs 2 lakhs and then get disappointed. A case in point in the issue of Snowman is that there were roughly 2.62 lac applications and in the retail category as many as 13, 000 applicants or 35% of the retail bucket was subscribed to by these 5% of applicants to the maximum extent of Rs 2 lacs. The allotment as is the norm was exactly pro-rata and they were allotted 5% of the shares. It makes no sense in applying for the full amount of the bucket if the number of applications would exceed the number of shares which could be offered on the basis of forms.
The retail portion of Snowman was 42 lac shares and the market lot was 300 shares which meant that if the company received 14,000 applications the retail bucket of the issue would be subscribed and all allotment would be way of lottery ticket. The company received about 2.62 lac applications.
Coming to the listing day itself, the price discovery saw the share zoom from Rs 47 to Rs 76. Once the price discovery was done the circuit filter was at 5% and the share in trade to trade. It saw delivery volume of 1.04 crore shares combine on the two exchanges.
| Exchange | Open | High | Low | Close | Net Chenge | % Gain/loss | Wt .Avg | Volume | Delivery | Del%age |
| BSE | 75.00 | 79.75 | 75.00 | 79.75 | 32.75 | 69.68 | 76.71 | 958153 | 958153 | 100.00 |
| NSE | 76.00 | 79.80 | 76.00 | 79.80 | 32.80 | 69.79 | 79.18 | 9477447 | 9477447 | 100.00 |
| Total | 10435600 | 10435600 | 100.00 |
On the buying side you had Reliance Mutual Fund who bought close to 36 lac shares around the circuit price and an HNI who bought 23.7 lac shares. This buying of almost 60 lac shares saw just one institutional seller in the form of Kotak Mahindra Bank who sold 15.46 lakh shares. It’s interesting to note that SEBI always believes that retail and HNI investors have a short term view while institutional investors have a longer term view. If money is being made or loss is being suffered all investors whether they be domestic, foreign, retail or institutional are the same and they act similarly. First sell then think.
Very clearly Snowman is associated with Christmas and the joy of celebration. It appears that Christmas has come to Dalal Street a good 3 months before time and no one is complaining. A great beginning and let’s hope that Snowman delivers on the trust that people have imposed on this company.
