Shares of UFO Moviez Limited which had tapped the capital markets with its offer for sale to raise Rs 600 crs listed on the exchanges yesterday. The price band was Rs 615-625. The company had received excellent response from anchors who were allotted 28.8 lac shares at the top end of the price band. There was a great buzz about this company before subscription actually opened but it failed to continue and by the time the issue was closing, it was struggling. It appeared as if the Unidentified Flying Objects instead of flying had crash-landed.

The issue managed to get fully subscribed. The debut day on Thursday began with the discovered price being Rs 600 against the issue price of Rs 625. The high of the day was Rs 623 on the BSE and Rs 622.90 on the NSE which effectively meant that the share did not even touch its issue price during intraday trading. The low of the day which was made in the last hour of trading was an identical Rs 586 on both exchanges.

From the table above one can see that the share witnessed fairly range bound trading with the weighted average for the day being a substantially higher Rs 606.49 and 605.46 on the BSE and NSE respectively. The fact that the low was made in the last hour disrupted the difference in the closing price which was lower than the weighted average. The fall indicates that someone who had applied for a large quantity of shares sold simply because he realised that the share price would not improve upto to his purchase price any way.
In terms of institutional investors just one name appears of Citigroup Global Markets Mauritius Private Limited who sold 1,76,120 shares at an average price of Rs 605.12. Incidentally the associate of this FPI was the lead manager of the issue. There were no other institutional trades which were reported.
The quantity traded on day one was 64.75 lac shares which was 67.45% of the IPO size of 96 lac shares. Delivery percentage was a healthy 30.64% of shares traded and 20.67% of the issue size. If one were to however consider the free float excluding the anchor allotment which is locked in for one month then the delivery percentage reduces to 20.67%. The closing price on the BSE was Rs 598.80 a loss of Rs 26.20 or 4.19% while on NSE it was Rs 597.30 a loss of Rs 27.70 or 4.43%.
Things could have been worse but the situation was salvaged on day one. This issue would add to the list of majority of IPO’s which debut with losses. Investors would have reason to blame the pricing or valuation of this issue on the merchant bankers, more so as this was an offer for sale and not a fresh issue.
All in all disappointing show from yet another high flying issue.