V-Mart Retail Limited which had tapped the capital markets with a simultaneous issue of 44.96 lacs listed on the bourses today. The issue included a fresh issue of 27.61 lac shares and an offer for sale of 17.35 lac shares in a price band of Rs 195-215. The company had done an anchor allocation to the minimum of two anchors of 6.74 lac shares at Rs 210. The issue was finally bailed out with the help of QIB’s who oversubscribed their quota of the issue 1.52 times. The retail portion remained undersubscribed at a mere 0.79 times.
The discovered price at the BSE was Rs 216 which was also the high of the day while it was at Rs 214 on the NSE. The high on the NSE was Rs 215. The low on the two exchanges was Rs 205.25 on the BSE and Rs 203.30 on the NSE which happen to be the lower circuits. A total of 3.49 lac shares have been traded in the first hour and this is a mere 7.77% of the issue size.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume |
| BSE | 216.00 | 216.00 | 205.25 | 205.25 | -4.75 | -2.26 | 210.23 | 115183 |
| NSE | 214.00 | 215.00 | 203.30 | 203.30 | -6.70 | -3.19 | 208.30 | 234471 |
| Total | 349654 |
The poor listing of the share clearly indicates that the price was expensive and even though the issue was subscribed it left nothing on the table for the investor. One more issue down the drain and one where investors have not made money. Looking at the performance of IPO’s in the free price regime one fully endorses the view of SEBI Chief that price controls must be brought for the IPO’s to reign in merchant bankers and promoters.
It would be interesting to see where the issue closes at the end of the day and whether there is any substantial increase in volume.