SRS Limited which had tapped the capital markets with its IPO for 3.5 cr shares in a price band of Rs 58-65 listed on the BSE and NSE on Friday the 16th of September. The issue had opened on the 23rd of August and closed on the 26th of August. The issue was subscribed 1.25 times. The stock opened at Rs 55 on the BSE and Rs 68 on the NSE. The high of the day was Rs 61.40 on the BSE and the open of Rs 68 on the NSE. The low was Rs 31.80 on the BSE and Rs 31.50 on the NSE. The share closed at Rs 33.65 on the BSE, a loss of Rs 24.35 or 41.98%. On the NSE the share closed at Rs 33.25, a loss of Rs 24.75 or 42.67%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 55.00 | 61.40 | 31.80 | 33.65 | -24.35 | -41.98 | 39.03 | 33245609 | 2588591 | 7.79 |
| NSE | 68.00 | 68.00 | 31.50 | 33.25 | -24.75 | -42.67 | 38.11 | 56691927 | 6807575 | 12.01 |
| Total | 89937536 | 9396166 | 10.45 |
The company had issued 3.5 cr shares and raised Rs 203 crs. The trading volume was 899.37 lac shares which was 2.57 times the IPO size. The weighted average of the day’s trade was 39.03 on the BSE and Rs 38.11 on the NSE. The delivery volume was 93.96 lac shares which was a mere 10.45% of the traded volume but a significantly higher 26.85% of the IPO size.
If one were to look at the chart, the stock opened literally at the day’s high and was falling right till 10.30 am, by which time ithad touched a level of Rs 38. There was a small recovery thereafter which saw the share touch Rs 41, but the fall again resumed. After 2.30 pm the traded volumes increased significantly and the share made its day low at around 3.15 pm. The share closed weak, under pressure and there is likely to be more pressure on the share when trading begins on Monday. The QIB portion was subscribed 0.75 times or 1.30 cr shares were subscribed by them. These institutions are unlikely to sell at such discounts and would prefer to hold on. The balance quantity of between 1.1 cr to 1.2 cr shares or slightly more than the first day’s delivery needs to be sold or delivered for the stock to bottom out. At the present juncture and the mood in the market it looks likely that this would happen somewhere around a level of Rs 25.
The listing has been a disaster and even though the business model of the company looks attractive for the future it was expensive and overpriced. The share has corrected to a great extent and a further correcting to levels mentioned above will make the share price reasonable to look at.
As far as investors are concerned the share listing was a complete disaster and whether anyone was able to exit the share with profits is most unlikely. SRS Limited would go down as yet another issue where investors have lost money on day one.
