Share makes a great debut – up 23%
Technofab Engineering Limited made a great debut yesterday. The share listed at a listing ceremony on the BSE and opened at Rs 265. On the NSE the opening price was Rs 276. The highs were Rs 307 on the BSE and Rs 307.80 on the NSE respectively. The lows were the open of Rs 265 on the BSE and Rs 268 on the NSE. The share has on day one given returns of 25% to those investors who have sold and booked profits.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 265.00 | 307.00 | 265.00 | 295.65 | 55.65 | 23.19 | 295.95 | 9496631 | 612553 | 6.45 |
| NSE | 276.00 | 307.80 | 268.00 | 296.95 | 56.95 | 23.73 | 296.80 | 15267045 | 1258514 | 8.24 |
| Total | 24763676 | 1871067 | 7.56 |
The issue was for 29.9 lakh shares in a price band of Rs 230-240 and was very well received by the investors. The issue was overall subscribed by almost 12.5 times. The combined traded volume on the two exchanges was a healthy 247.64 lakh shares or 8.28 times the IPO size. The net delivery quantity was 18.71 lakhs which was a mere 7.56% of the traded volume but a substantial 62.58% of the IPO size. There has been some institutional selling on day one and some of the sellers included Taib Bank, India Birla Monthly Income Plan, Max Investment Fund and Birla Infrastructure Fund. There were no institutional names on the buy side.
The share held steady throughout the day and the 25% returns which have investors have got is fairly creditable in these times where almost the majority of issues do badly after listing. The management of the company has given guidance for the company for the current year in terms of topline and bottomline and the same is in line with what was written in the article on the IPO of the company. The company is expected to do a topline of roughly Rs 300 crs and a PAT of Rs 27-28 crs which means on a post money basis the share at yesterday’s closing price of Rs 295 is trading at a PE multiple of just under 11 times its expected earnings of Rs 27 per share.
The share is holding steady at the current position. There is however one concern that there has been a liquidation of holding from institutions and no institutional buying against the same. With world markets weak yesterday the likely event of the stock countering profit taking on Monday seems likely.
In conclusion the listing has been successful and investor’s confidence has been rewarded.
