Share creates dubious history

Tarapur Transformers Limited listed on the bourses yesterday. The company had issued through an IPO 85 lakh shares at Rs 75. The company is a subsidiary of another listed entity BILPOWER Limited. The share listed at its issue price of Rs 75 on the BSE and NSE. The share made a low of Rs 70.20 on the BSE and Rs 75.35 on the NSE respectively. Thereafter it was a one way move for the share all the way to the high of Rs 97.50 on the BSE and Rs 97.45 on the NSE. Then the share began to fall and it fell with purpose. Traded volumes were huge since morning and they just kept on increasing with every minute. The last tick at the end of the day said that the combined traded volume was 14.48 cr shares which is 17.04 times the IPO size of 85 lakh shares.

This volume is unheard of and I do not recall ever seeing such trading volumes. One must also recollect that there was no great response to the IPO and the share was subscribed through oversubscription in the HNI and retail categories. The first hour of trading saw a traded volume of 2.7 cr shares and this just kept on moving up throughout the day. Coming to deliveries the figures are even more interesting. The total deliveries are 81.61 lakh shares which is a mere 5.63 % of traded volume but hold your breath, a mind boggling, unprecedented 96.01% of the IPO size of 85 lakh shares. In my living memory, I am not aware of any other company having reached such high delivery figures on day one.

The delivery numbers become even more interesting considering the weighted average of the share which is Rs 77.87 on the BSE and Rs 77.73 on the NSE respectively. The weighted average indicates that people have been able to exit at above issue price and once new people (traders) were attracted into the share there has been dumping of the shares.

It indeed has been a complete disaster and I believe that even at this price there should be no reason to invest in the share. Readers would also be aware that your website chose not to cover this stock