Flying start and spectacular finish – Share more than doubles on day one
Career Point Infosystems Limited listed at a very sedate listing ceremony held at the BSE in its Training Institute. Career Point is into the business of teaching and this was an apt way to begin the listed life for a company involved in teaching.
The share listed on the BSE at Rs 461 and the same price opened at the NSE as well. The low on the BSE was Rs 450 while on the NSE was Rs 436.10. The high on the BSE was Rs 674 while it was Rs 664 on the NSE. The close was lower at Rs 632.35 on the BSE and Rs 628.15 on the NSE respectively.
The reason for the difference in the high and close was not because of any selling pressure on the share but because of the huge rise in the last 30 minutes on account of short covering and the closing price being adjusted on the basis of weighted average.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 461.00 | 674.00 | 450.00 | 632.35 | 322.35 | 103.98 | 571.34 | 14991681 | 777224 | 5.18 |
| NSE | 461.10 | 664.00 | 436.10 | 628.15 | 318.15 | 102.63 | 570.90 | 22596469 | 1825989 | 8.08 |
| Total | 37588150 | 2603213 | 6.93 |
There has been institutional buying in the form of purchases from HDFC and Reliance Mutual funds. The company had raised Rs 115 crs at a price of Rs 310 and the share closed at around Rs 630 gaining more than 101%. One is not sure whether valuations could justify this price but very clearly the short sellers ensured that this share joined an elite list of companies which gained triple digit gains on day one.
The total traded volume was a staggering 375.88 lakh shares or 10.13 times the IPO size of 37.09 lakh shares. Delivery volume of over 26 lakh shares was just about 6.93% of the total traded volume of about 375 lakh shares but a significant 70.17% of the IPO size of about 37 lakh shares. If one were to consider the fact that 18% of the total issue size was allocated to anchor investors who cannot sell for one month, virtually no floating stock remains. The stock has done far better than expected and to expect that these prices continue to rise or remain around these levels may be difficult.
In conclusion an excellent performance for the stock on day one where the stock has closed with gains in excess of 100%.
