Shriram City Union Finance Limited which had launched its bond issue to collect Rs 750 crs listed on the BSE and NSE on Friday the 2nd of September. The bond issue was oversubscribed and all eyes were on this issue because after the disastrous performance of the last bond issue post listing investors were worried about the performance of this company.

The issue was open for subscription from the 11th of August and scheduled to close not later than the 27th of August. The issue closed much earlier as the issue was on a first come first served basis and garnered the amount of the issue of Rs 750 crs.

The most sought after bond was the retail bond having a maturity of 5 years and the coupon rate of 12.10%. This coupon rate was higher than the 11.9% offered by India Infoline Limited and which was the previous bond issue to list.

From the price chart above it is clear that the bond issue had some selling pressure immediately on listing and this was the fear from the previous issue. The stock touched its low in the pre-open session and then made a low of around Rs 971 in the first hour of trade. Thereafter the stock recovered significant ground and closed just about the issue price at Rs 1000.07. What is important is the fact that there was decent volume in the bond and a total of 7.84 lakh bonds were traded on the BSE. The weighted average was Rs 995.60. The open was Rs 998, the high was Rs 1005, the low was Rs 959 and the close at par at Rs 100.07.

The success of the bond on listing augurs well for the issue which is currently open from Muthoot and the issue from ReligareFinvest which is likely to open next week.