SJVN Limited the hydro power generating company which is co-promoted by the Government of India and the state of Himachal Pradesh listed today at the NSE and BSE. The company had come out with an offer for sale of 41.5 cr shares in a price band of Rs 23-26, with a discount of 5% to retail investors and employees. The issue had received excellent response and was oversubscribed 6.64 times. The interesting part of this subscription was the retail portion getting subscribed 3.11 times showing the confidence that the retail had in the price band fixed. The issue price was fixed at the upper price band of Rs 26 and allotment to retail investors was at Rs 24.70 after factoring in the 5% discount.

The share opened at Rs 28 on the BSE and at Rs 27.10 on the NSE respectively. The opening levels itself were the highs on both the exchanges. The lows were Rs 24.15 on the BSE and Rs 24 on the NSE respectively. Trading volumes are very brisk and one must also consider the fact that the issue size itself was huge – 41.5 cr shares. In the first fifteen minutes of trade almost 2.2 cr shares have been traded.

The weighted average after the first half hour of trade indicates that the share is under pressure and is trading slightly higher than the net discounted price of retail investors which means that there is already a 5% discount in price. This is not a good sign and does not augur well for the issue. It clearly shows that the mood in the market place is becoming negative and this mood will affect investors’ appetite in future IPO’s as well.

The share is trading at around Rs 24.50-24.80 which is around a 5% loss to the issue price. Thirty minutes of trade have seen volumes of 3.3 cr shares or about 8% of the issue offering. Good volumes but clearly share is under pressure. The day panning out and delivery percentage will be important at end of day.