Janus Contrarian fund saves complete embarrassment
DB Realty Limited listed yesterday on the BSE at a listing ceremony which was well attended. The stock opened lower and just kept on falling. It was only midway through the day that Anchor investor Janus stepped in and bought shares at an average price of about Rs 437.62, a discount of Rs 30.38 or 6.5% to the price of Rs 468 at which the company had allotted shares.
Coming to the listing itself, the stock opened at Rs 430 and made a low of Rs 412.50, before buying by Janus and huge support rallied the stock to make the days high of Rs 466.20. The stock closed at Rs 455.40 a small loss of 2.7%. On the NSE the stock opened at Rs 452.10, fell to Rs 412.45, made a high of Rs 467 and closed with a loss of 11.8% at Rs 456.20.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 430.00 | 466.20 | 412.50 | 455.40 | -12.60 | -2.69 | 440.43 | 20920602 | 2936337 | 14.04 |
| NSE | 452.10 | 467.00 | 412.45 | 456.20 | -11.80 | -2.52 | 439.87 | 25101889 | 4077632 | 16.24 |
| Total | 46022491 | 7013969 | 15.24 | |||||||
The company had issued shares in a price band of Rs 468-486 and raised Rs 1500 crs. The price discovered was the lower end of the price band of Rs 468 at which price the company issued and allotted 320 lakh shares. Volumes yesterday were quite decent and 4.60 cr shares or 1.44 times the IPO size was traded. Deliveries as a percentage of traded volume were 15.24%, a fairly low number. Total deliveries at 70.14 lakh shares were about 22% of the issued capital. As mentioned earlier the fresh buying by Janus has really helped the stock as they bought 33.82 lakh shares at an average price of Rs 437.6. There purchase is almost half of the deliveries which took place yesterday.
The share was expensive and the issue was very aggressively priced. Retail response to the issue was quite poor and overall it was tough going for the company. The promoters of the company had assured investors and analysts on the road show in Mumbai that they would hold an analyst meet in Mumbai to answer all questions regarding the company within 40 days of listing. Day one is over and a maximum of 39 more to go. Let’s hope they stick to their word and deliver.
The share took a beating on listing yesterday and survived a massive scare because of fund buying. The share is looking weak and unless someone continues to support or buy today, the share could crack.
