Share under pressure
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Nitesh Estates Limited which had tapped the IPO market between the 23rd and 27th April listed yesterday. The company had issued 7.5 cr shares at a price of Rs 54. The share had a quiet start. The real estate sector is under pressure and probably this was the reason why the company was unable to garner overwhelming response even though it roped in marquee Anchor Investors. Some of the names included Nomura, HDFC, HSBC and SBI.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 50.00 | 55.00 | 48.05 | 50.95 | -3.05 | -5.65 | 51.38 | 15396279 | 1078879 | 7.01 |
| NSE | 54.00 | 58.00 | 48.40 | 51.40 | -2.60 | -4.81 | 51.46 | 22625458 | 2328848 | 10.29 |
| Total | 38021737 | 3407727 | 8.96 |
The company had a listing ceremony at the BSE and the share opened at Rs 50 on the BSE and Rs 54 on the NSE. The share made a high of Rs 55 on the BSE and Rs 58 on the NSE respectively. The lows were Rs 48.05 and Rs 48.40 respectively. The traded volumes were 3.80 cr shares or roughly a little over 50% of the IPO size. The delivery volume was 34.07 lakh or 8.96% of the traded volume. If one were to compare this figure with the IPO size it is a mere 4.54% and this is the worrisome figure. The share which was issued at Rs 54 lost about 5.61% and 4.85% on the BSE and NSE. This is not a big loss but there has been virtually no delivery accompanying the fall. In case the share slips further and is accompanied by volume the fall can be bigger, and it could really hurt the investor.
The day ended with the share down about 5%, trading volume of roughly 50% of the issue size and a delivery percentage of roughly 4.54% of the issue size of 7.5 cr shares. The stock is under pressure and is likely to weaken further. The extent of fall cannot be forecasted as of today but it would be in the interest of investors looking at the stock to wait for some time before taking a call on the stock.
