Shilpi Cable Technologies Limited which had tapped the capital markets with its IPO in a price band of Rs 65-69 was subscribed. The issue was open between the 22nd and 25th of March and was to raise Rs 5587.72 lacs. The issue was overall subscribed 3.48 times and received excellent response from the HNI’s and retail category of investors.

The details of the subscription level in various categories are given below: –

The recent increase in number of issues which lack fundamentals is on the increase and is a cause of concern for the markets. These issues use “outside support” for the subscription and then manage to keep the issue afloat for a few days before the share price sinks trapping unaware investors. The latest such example is that of Acropetal Technologies Limited. This company came out with its public issue in a price band of Rs 88-90. The share made a high of Rs 156 in the week gone by and crashed to close at Rs 70.10. This is the beginning of the fall and the trapping of innocent investors.

It is time that SEBI and the stock exchanges took action against such companies. One simple way to control the rapid manipulation in such shares is to move them into the trade for trade segment. This would reduce the high volumes that are witnessed in such shares and then the poor delivery percentage. One hopes that in the interest of the capital markets immediate action is taken.