Olympic Cards Limited which had tapped the capital market with its IPO to raise Rs 25 crs in a price band of Rs 30-32 listed on the BSE yesterday. The company had issued a total of 77,89,800 shares at Rs 30. This was the first listing of a company sub 250 crs under the new listing guidelines where there is a price discovery mechanism and then the share trades with a 5% circuit filter under trade to trade category.
Olympic Card Limited saw the discovered price as Rs 30 and the opening trade saw a volume of 3,48,900 shares. The share after the discovered price of Rs 30, opened at Rs 29.95, saw a high of Rs 30 and a low of Rs 28.50. The share closed at the low of the day at Rs 28.50. The total traded volume was 21,32,083 shares which was the delivery volume as well. The weighted average of the day was Rs 29.27. The delivery percentage of the issue size was 27.37%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 29.95 | 30.00 | 28.50 | 28.50 | -1.50 | -5.00 | 29.27 | 2132083 | 2132083 | 100.00 |
After the SEBI order against companies which had tapped the capital markets last year SEBI had come out with new norms for trading on listing day for IPO’s. This was a very welcome move and even though this was the first IPO to list under trade to trade category the difference is there for all to see. The trading volume was a mere 27% of the issue size against a average of 10-20 times the IPO size in previous issues. Secondly the volatility has been curbed with the circuit filter being imposed in this company’s case at 5%. The share traded in that range and closed at the low. I believe it’s too early to comment on this new method being totally fool proof but concerns of poor liquidity and exit by an investor being difficult have not happened in this issue. SEBI needs to be congratulated for the move and in being successful to tame the rampant manipulation on listing day in the earlier system of IPO listing.
From the price chart above it is very clear that the share was under pressure throughout the day and fell the maximum 5% permissible by the end of the day.
| BSE | |||
| Period | |||
| Ending | Average | Traded Vol | Close price |
| 10.00 | 29.95 | 348900 | 30.00 |
| 10.30 | 29.85 | 354584 | 29.45 |
| 11.00 | 28.94 | 12761 | 28.55 |
| 11.30 | 29.49 | 166800 | 28.75 |
| 12.00 | 29.49 | 125036 | 29.50 |
| 12.30 | 29.00 | 136212 | 29.00 |
| 1.00 | 29.02 | 54350 | 28.95 |
| 1.30 | 28.94 | 272820 | 29.00 |
| 2.00 | 28.90 | 120200 | 28.90 |
| 2.30 | 28.80 | 379120 | 28.80 |
| 3.00 | 28.66 | 56800 | 28.60 |
| 3.30 | 28.50 | 104500 | 28.50 |
From the above table it is visible that there has been volume throughout the day and buying and selling opportunities existed. The weighted average for the half hour and the closing price has matched throughout except in the half hour ended 11.30 am where the weighted average was 29.49 and the closing price was Rs 28.75. This indicates the share came under selling pressure hear.
All in all the new system looks workable and we need a few more listings to confirm the same. The huge volume that was seen on listing day is a thing of the past and I believe that would be the crucial element in curbing the volatility coupled with trading in trade to trade segment for sub Rs 250 cr issues.
