Lovable Lingerie Limited listed at the BSE and NSE today. The opening price at the BSE was Rs 261.50 while it was Rs 240 on the NSE. The high on the BSE was Rs 278.95 while on the NSE it was Rs 278.90. The low in the first hour of trade was Rs 252.25 on the BSE and the open of Rs 240 on the NSE.

Lovable Lingerie Limited had launched its IPO between the 8th and 11th of March in a price band of Rs 195-205. The company had made an anchor allocation as well. The size of the issue was 45.50 lakh shares. The issue was very well received and was oversubscribed an overall 35.21 times. The HNI portion was subscribed 99.87 times and the retail portion 35.21 times. The cost of the leveraged investor or HNI would roughly be Rs 76. This means that for the HNI the breakeven level would be Rs 281. So far the high has been just short of Rs 280 and more than prayers would be needed to make profits.

The share has seen brisk trading and in the first hour of trading 176.27 lakh shares have been traded. The size of the issue was 45.5 lakh shares which mean that over 3.87 times the IPO size has been traded. The current price at 10.15 am or at the end of the first hour of trade is Rs 258.75 on the BSE and Rs 258.35 on the NSE, a gain of just about 26%. The performance so far is excellent but the share appears to be under pressure. The weighted average of the day’s trade is Rs 265.95 on the BSE and Rs 265.38 on the NSE. The share price is roughly Rs 8 below the average traded price indicating the pressure.

The selling point of the issue was its cheaper valuations compared with Page Industries. With the current 26% gain, the cheaper valuation is no longer a reality. It needs to be seen whether one should go for size and forgo the slight premium or back somebody who is in the process of establishing the brand, 17 years after launching it.