Share simply crashed with huge volumes

Thursday the 15th of October was the auspicious day of ‘Dhanteras’ when people buy precious metal typically silver and bring wealth to the house. It coincided with the listing of Euro Multivision Limited’s IPO. The listing was good but the day was a disaster for almost all its investors. A large number of institutional investors have sold in the first 20/25 minutes when the stock was trading in the 79-80 range.

Stock opened well and was trading in positive territory for the first 20 minutes or so. The high made on BSE was Rs 80.90 and on the NSE was Rs 80.70. Thereafter it started falling and the low of the day was made in the last ten minutes of trade for the day. The low on BSE was Rs 51.60 while on the NSE it was Rs 51.65. The trading volume was huge with 4.23 cr shares being traded. This trading is 4.91 times the issue size of the IPO of 86 lakh shares. The delivery volume was also significantly higher, with 57.19 lakh shares being delivered. In terms of percentage to traded shares it was a mere 13.53% but when looked at in comparison with the IPO size it is 66.5%. In fact what this means is that 2 out three shares allotted in the IPO have changed hands on day one. This high delivery is unheard of in recent times.

Institutional investors have also sold on day one and as much as 17.35 lakh shares were delivered by them.

From the table above one other interesting fact emerges. The weighted average of trade on the BSE was Rs 63.97 while the adjusted close is Rs 53.20. This means the price has further fallen by Rs 10.77 from the average or is 16.8% lower than the average. On the NSE the weighted average of trade is Rs 62.75 and the close Rs 52, a loss of Rs 10.75 or 17.13%. This indicates that if prices do not improve today we could see a sharp fall today as well.