Sedate start but share under pressure
Parabolic Drugs Limited listed on the BSE and NSE yesterday. The company had come out with IPO in a price band of Rs 75-85 to raise Rs 200 crs. The issue included an offer for sale by the private equity investors of 20,25,702 shares. The company is in the midst of completing phase I of its expansion which would increase its capacity by about 40% and the proceeds of the issue would be utilised to increase the capacity by another 40% besides other objects. In short the capacity would almost double in the next 12 to 15 months.
The company also declared its results for the quarter and year ended March 2010 where the revenues have grown to Rs 559 crs and the net profit a healthy 34.20 crs. The EPS on a pre-money basis for the year ended March 2010 was Rs over Rs 9.
Coming to the listing itself, the share listed at the BSE at Rs 76 and at the NSE at Rs 75. The highs were Rs 79 and Rs 75.95 respectively. The lows were Rs 63 on the BSE and Rs 63.10 on the NSE. The combined traded volume was 186.64 lakh shares which is roughly 70% of the IPO size of 2.667 cr shares. The delivery volume was 35.48 lakh shares which is 19% of the traded volume and a mere 13.30% of the IPO size. The low delivery volume is an indication that the institutional investors have decided to hold on and would wait for the share to settle down.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 76.00 | 79.00 | 63.00 | 64.80 | -10.20 | -13.60 | 67.79 | 7834104 | 1282492 | 16.37 |
| NSE | 75.00 | 75.95 | 63.10 | 64.85 | -10.15 | -13.53 | 67.86 | 10830205 | 2266106 | 20.92 |
| Total | 18664309 | 3548598 | 19.01 |
Today would be a crucial day for the share and it would be interesting to see volumes and particularly delivery volumes pick up or not. Secondly the share needs to hold and I believe the share should find support at the Rs 60 mark. Based on expected earnings the stock is available at a PE multiple of just under 7 for expected earnings of March 2011
