Speciality Restaurants Limited better known for its flagship restaurant ‘Mainland China’ listed on the NSE and BSE yesterday. The price discovered after the auction was Rs 153 on the BSE and Rs 152 on the NSE. The company had issued shares at Rs 150. The issue was subscribed an overall 2.54 times and remained undersubscribed in the Retail category. The price band was Rs 146-155 and the issue size was 117.39 lac shares.

The issue received lukewarm response from the retail category on account of the high valuations. A serious effort was made to market this company by comparing it with a ‘QSR’ format pizza chain. The effort fell through simply because the two models are not comparable. Speciality’s USP is a fine dining experience and that cannot be done on a take away or a telephonic order.

The share of the company received a great boost on day one when Reliance Mutual Fund who was an anchor investor and also an investor in the QIB book, decided to buy on day one. Reliance bought 4,57,405 shares on day one which accounted for half the shares transacted on that day. The average of the day on the BSE was Rs 156.82 while that of Reliance was higher at Rs 158.88 indicating that they began buying late in the day. Their buying into the scrip will ensure some more action in the coming days.

The share hit the upper circuit at just about 10 am and remained there till the end of the day. The share has done reasonably well for itself considering the fact that it was overpriced. Some more upside because of the interest shown by one of the large mutual funds is imminent. All in all a gain of about 7% is good considering the challenging environment and the market conditions. The traded volume at a mere 7.79% is extremely poor under whatever circumstances.