Microsec Financial Services Limited which had tapped the capital markets with its IPO for 1.25 cr shares in a price band of Rs 113-118 listed yesterday. The share opened strong and against the issue price of Rs 118, opened at Rs 135.10 on the BSE and Rs 130 on the NSE respectively. The highs were Rs 141 on the BSE and RS 142 on the NSE respectively. The lows were Rs 108.30 on the BSE and Rs 108.55 on the NSE respectively.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 135.10 | 141.00 | 108.30 | 110.90 | -7.10 | -6.02 | 117.38 | 16978716 | 2295428 | 13.52 |
| NSE | 130.00 | 142.00 | 108.55 | 111.35 | -6.65 | -5.64 | 117.53 | 26020771 | 5104356 | 19.62 |
| Total | 42999487 | 7399784 | 17.21 |
The share after the first few minutes as can be seen from the intra-day chart was on a downtrend continuously. The share was under selling pressure and it appeared there was nobody interested in buying the share. Readers would remember that this share was oversubscribed an overall of 12.2 times with institutions subscribing 5.91 times, HNI’s 35.88 times and Retail investors a very creditable 11.04 times.
Institutional investors were big sellers and have sold on day one a large quantity of shares. While some have made money many others have lost on their investment in Microsec. Names of institutional sellers include Credit Suisse 2.7 lakhs, CSFB 2.7 lakhs, DB International 4.44 lakhs, Deutsche Securities Mauritius 2.7 lakhs, Emerging India 1.77 lakhs, Merrill Lynch 3.29 lakhs, Swiss Finance 2.7 lakhs, and Royal Bank of Scotland 3.95 lakhs. All these sales put together give a figure of 24.27 lakh shares which is 33% of the total delivery sales on day one.
The total traded volume on day one was 4.30 cr shares or 3.44 times the IPO size of 1.25 cr shares. Total deliveries of this traded volume were 73.99 lakhs or 17.21%. Deliveries as a percentage of IPO size was 59.19%, slightly lower than the typical 65-75% seen on other listing days. One thing is clear that the share was under pressure and except the first few minutes gave flippers virtually no chance to make money.
Looking at American markets which made a new 5 month high, the mood in India could be better and one hope’s, favours this stock as well. Readers would recall that this is the third IPO to list in the last few days after Indosolar and Tirupati Inks. Unfortunately the only similarity between all three of them is that they closed below issue price on day one itself. This does not augur well for the stock markets in general and the primary market offerings in particular.
