Medplus Health Services Limited which is tapping the capital markets with its fresh issue for Rs 600 crs and an offer for sale of Rs 798.29 crs in a price band of Rs 780-796 completed allocation to anchor investors. The issue opens on Monday the 13th of December and closes on Wednesday the 15th of December.

The company allotted 52,51,111 shares to 25 anchor investors comprising of 36 entities. The top allocation was made to four anchor investors equally who were allotted 3,46,086 shares or 6.59% each. These were Abu Dhabi, Blackrock, Fidelity and Nomura. This was followed by five domestic funds being allotted an equal 3,01,518 shares or 5.74% of the anchor book each. The top nine anchor investors were allotted 55.06% of the anchor book.

Seven Domestic funds comprising of 18 entities were allotted 17,96,238 shares or 34.21% of the anchor book.

Full details of the anchor allocation are given below: –

Shriram Properties Limited who had tapped the capital markets with its fresh issue for Rs 250 crs and an offer for sale of Rs 350 crs, was subscribed 4.81 times. The issue has opened on Wednesday the 8th of December and closes on Friday the 10th of December. The price band is Rs 113-118.

Earlier the company had completed allocation to anchor investors. The company allotted 2,27,66,949 shares at Rs 118 which is the top end of the band to 10 anchor investors comprising of 30 entities. The highest allocation was made to Nomura who was allotted, 42,37,375 equity shares or 18.61% of the anchor book. This was followed by SBI Life Insurance who was allotted 37,29,000 shares or 16.38% of the anchor book. Nippon Mutual fund was allotted 33,89,875 equity shares or 14.89% of the anchor book. Sundaram Mutual Fund was allotted 11.14% of the anchor book.

Domestic mutual funds were allotted 84,74,625 equity shares or 37.22% of the anchor book. The top 4 anchors were allotted 61.02% of the anchor book.

The QIB portion was subscribed 1.93 times, HNI portion was subscribed 5.04 times, Retail portion was subscribed 13.27 times and Employee portion was subscribed 1.31 times. There were 4.56 lac applications and on basis of lots, Retail portion was subscribed 11.28 times.

Full details of subscription are given below: –

Star Heath and Allied Insurance Company Limited which had tapped the capital markets with its fresh issue for Rs 2,000 crs and an offer for sale of 5,83,24,225 shares in a price band of Rs 870-900 saw tepid response and struggled in getting subscribed. At the end of the three-day subscription period, it could garner subscription to the extent of just 79% of the issue post anchor. It would now proceed to allot the shares based on the response received and reduce the shortfall in subscription by reducing the size of the offer for sale.

The shares had a discovery price of Rs 848.80 on BSE and Rs 845 on NSE. At these prices, the traded quantity was 14,747 shares on BSE and 8,02,907 shares on NSE.

Earlier the company had completed allocation to anchor investors. The company allotted 3,57,45,901 equity shares to 49 entities comprising of 62 entities at the top end of the price band of Rs 900.

The highest allocation was made to Baillie Gifford Pacific Fund who was allotted 27,76,208 shares or 7.77% of the anchor book. This was followed by Monetary Authority of Singapore and Government of Singapore who were allotted 6.89% and 0.87% of the anchor book, making a total of 27,76,224 shares or 7.76% of the anchor book. This was followed by WF Asian Smaller Companies Fund who was allotted 27,30,992 shares or 7.64% of the anchor book. This was followed by Valiant who through three funds was allotted 24,82,928 share or 6.95% of the anchor book.

The top four anchor investors were allotted 1,07,66,352 shares or 30.12% of the anchor book. The surprising thing was that there was just one domestic fund, Edelweiss Mutual Fund who invested 1,65,376 shares or 0.46% of the anchor book. Very clearly the non-participation by domestic mutual funds whatever be their reason is a disturbing thing as they are the entity which is witnessing the maximum fund flow currently.

The final issue size was 6,76,91,120 shares. This was significantly lower than the original size of 8,06,54,848 shares. The issue had opened on Tuesday the 30th of November and closed on Thursday the 2nd of December.

The high of the day on BSE was Rs 940, the low was Rs 827.50 and the close was Rs 906.85. The gain was Rs 6.85 or 0.76%. On NSE, the high of the day was Rs 940, low was Rs 828 and the close was Rs 906.85 a gain of Rs 6.85 or 0.76%.

The traded volume on the two exchanges combined was 140.63 lac shares which was 0.21 times the IPO size of 676.91 lac shares and 0.44 times the non-anchor portion of 319.45 lac shares. Delivery volume was 48.17 lac shares which was 34.26 % of the traded volume. It was 7.12 % of the issue size and 15.08 % of the non-anchor portion. The weighted average of the day’s trade was Rs 898 on BSE and Rs 897.29 on NSE.

In terms of institutional or bulk trade, none were reported on either BSE or NSE. The traded and delivery volumes were abysmally low and showed that there were vested interest at play in ensuring that the share managed to remain afloat at the end of the first day’s trading. With such poor volumes, the share could drift or move in either direction depending on demand or supply. However, for anything to happen volumes have to pick up with deliveries too taking place.

In conclusion a very badly priced issue where a dozen merchant bankers with promoters went grossly wrong in overpricing the issue. Time to go back to the drawing board.