Company creates dubious History with more than 100% delivery on day one

I wish to make a correction in the issue size. The issue was for Rs 63 crs and the price band was Rs 90 – 100, which in terms of number of shares was 70 lacs at the lower end and 63 lacs at the upper end of the price band.

The issue was priced at the upper end of the price band which means that the IPO size was 63 lac shares. This changes a few equations. This becomes the first company in a very long time where the delivery on day one is more than the IPO size. This means people became short and because the price was down there was no need to cover the same. Had the price been up there would have been some short covering and this could have led to some interesting movements.

Coming to the traded volume which was 746.53 lac shares, this was 11.85 times of the IPO size. The delivery volume was 63.46 lac shares which means that the delivery as a percentage of the traded quantity was a mere 8.5% but of IPO size was a staggering, unbelievable and unheard of 100.73%. This means that for every 100 shares issued in the IPO, 101 shares were delivered. This has not happened in a very long time and happened in Nissan Copper, an issue which came to the markets in December 2006.