Share closes with a loss of Rs 8 or 23%
Shares of Paramount Printpackaging Limited listed at the BSE and NSE yesterday. The company had a listing ceremony on the BSE and the opening price on the BSE was Rs 35, while it was Rs 36.50 on the NSE. The high of the day was Rs 37.50 on the BSE and Rs 37.90 on the NSE. The low was Rs 24.60 on the BSE and Rs 24.80 on the NSE.
The issue was oversubscribed 3.92 times and received excellent response from retail and to a lesser extent from HNI’s. The QIB portion was undersubscribed with response for a mere 1/3rd of the quota getting subscribed. As a matter of fact retail subscribers put in money for 83.23% of the total subscription. The issue size was 1,30,94,175 equity shares in a price band of Rs 32-35 and at the upper price of Rs 35 which was the price finalised the company has raised Rs 45.83 crs.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 35.00 | 37.50 | 24.60 | 26.65 | -8.35 | -23.86 | 33.28 | 39340050 | 5761414 | 14.65 |
| NSE | 36.50 | 37.90 | 24.80 | 27.05 | -7.95 | -22.71 | 33.40 | 36769530 | 5000270 | 13.60 |
| Total | 76109580 | 10761684 | 14.14 |
The share traded in a narrow band of Rs 35-36 till 2 pm. Then the first attack on the share price came which saw the share falling to around 30.50 and recovering to just under Rs 35, and all of this happened in a mere 15 minutes but it was accompanied by huge volume. The second attack was more gradual and saw the share slowly declining to Rs 28 and then recovering to Rs 30. The last half hour of trading saw the share crashing to make the lows of Rs 24.60 and Rs 24.80 respectively. The weighted average close saw the price improve to Rs 26.65 on the BSE and Rs 27.05 on the NSE. The loss for the day on the BSE was Rs 8.35 or 23.86% and Rs 7.95 or 22.71% on the NSE.
Trading volumes were high and the combined volume was 761.09 lac shares which is 5.81 times the IPO size. The delivery volume was 107.61 lac shares which is 14.14% of the traded volume and 82.19% of the IPO size. The weighted average of the day’s traded volume is Rs 33.28 on the BSE and Rs 33.40 on the NSE. On the QIB front one of the two funds who had applied in the issue, have sold a portion of their allotment. Cresta Fund has sold 3,09,861 shares on the BSE against its allotment of 5,50,050 shares. Assuming retail investors have sold at the average they have lost money on their investment as the weighted average was roughly 5% below the issue price.
This does not appear to be the case as the volume in the share in the last 90 minutes of trade was very heavy and it is only when the share came under selling pressure that the volume increase and the price fell.
In short yet another listing where investors have lost money and retail investors who were the pillars of strength of the issue thinking that they would be given a safe exit by “friendly supporters” have lost their shirt if they have sold yesterday. In case they haven’t sold as yet, the possibility of losing more than the shirt looks more likely.
