Exxaro Tiles Limited which had tapped the capital markets with its fresh issue for 1,11,86,000 shares and an offer for sale of 22,38,000 in a price band of Rs 118-120, debuted at the bourses and closed at the upper circuit of Rs 132.30. The share gained Rs 12.30 or 10.25%.

Earlier the company had completed allocation to anchor investors. The issue which had opened on Wednesday the 4th of August and closed on Friday the 6th of August, saw the company allotting 19,73,325 shares at Rs 120 per share. The company allotted the shares to two anchors comprising of three entities. The highest allocation was given to Quant Mutual Fund, who was allotted 15,56,500 shares or 68.88% of the anchor allotment equally in two schemes. The second mutual fund who was allotted shares was AG Dynamic Funds who was allotted 4,16,825 shares or 21.12% of the anchor book.

The QIB portion was subscribed 17.67 times, HNI portion was subscribed 5.36 times while Retail portion was subscribed 40.10 times. Employee portion was subscribed 2.53 times. There were 21.10 lac applications and on basis of applications, the retail issue was subscribed 34.58 times. Overall, the issue was subscribed 22.68 times.

The size of the issue was Rs 165 crs, hence the share would trade in the trade-to-trade category for ten trading sessions. The discovered price on BSE and NSE was an identical Rs 126. At this price the traded volume on BSE was 36,283 shares while it was 6,88,434 shares on NSE. The share closed at the 5% upper circuit of Rs 132.30 on both exchanges.

The high of the day on BSE and NSE was Rs 132.30 and the low was the discovered price of Rs 126 on both exchanges. Looking at the prices, it seems that there were vested interests at play in supporting the prices and allowing the share to have a smooth day on a day when bigger names fell by the wayside.

The weighted average of the day was Rs 129.02 on BSE and Rs 128.93 on NSE. The traded volume was 7.40 lac shares on BSE and 46.33 lac shares on NSE. The traded volume combined of 53.74 lac shares was 40.03% of the IPO size of 134.24 lac shares. It was 46.93% of the non-anchor portion of 114.50 lac shares. Delivery volume was 100% of traded volume as the share is in trade-to-trade category.

There were four trades which appeared on NSE. While two were on the buy side, two others were on the sell side. The names on the buy side included, Mansi Shares who bought 2.25 lac shares at Rs 132.30 and Vaibhav Doshi who bought 3.04 lac shares at Rs 128.74. On the sell side, were Plutus Wealth Management who sold 2.57 lac shares at Rs 127.67 and Morgan Stanley Asia who sold 2.54 lac shares at Rs 127.07.

While the performance of the share could be said to be good considering the market, one does get a feeling that things were ‘manged’. The share has another nine days to go under restricted trading and it would be interesting to see how it fares during these crucial nine days.

Windlas Biotech Limited which had tapped the capital markets with its fresh issue of Rs 165 crs and an offer for sale of 51,42,067 equity shares in a price band of Rs 448-460, listed on the bourses and had a poor outing. The share closed at Rs 406.70, a loss of Rs 53.30 or 11.59% on day one. The discovered price on BSE was Rs 439 at which price 14,714 shares were traded. On NSE, the discovered price was Rs 437 at which price 2,26,761 shares were traded.

Earlier the company had completed its allocation to anchor investors by allotting 26,18,706 equity shares at Rs 460 to 12 anchor investors comprising of 22 entities.

The highest allocation was made to ICICI Prudential Pharma Healthcare Fund of 5,43,450 equity shares or 20.75% of the anchor allocation. This was followed by an equal allotment of 2,17,410 shares or 8.30% to 8 anchors. This implies that the top nine anchors were allotted 87.15% of the anchor portion.

The issue had opened on Wednesday the 4th of August and closed on Friday the 6th of August.

The QIB portion was subscribed 24.10 times, HNI portion was subscribed 15.91 times while Retail portion was subscribed 24.54 times. There were 21.01 lac applications and on basis of applications, the retail issue was subscribed 20.63 times. The overall issue was subscribed 22.56 times.

The high of the day on BSE was Rs 452.10, low was Rs 405 and the close was Rs 406.70. The loss was Rs 53.30 or 11.59%. On NSE, the high of the day was Rs 452, low was Rs 405 and the close of the day was Rs 407.15, a loss of Rs 52.85 or 11.49%.

The weighted average of the day was Rs 424.58 on BSE and Rs 424.87 on NSE. The traded volume was 3.27 lac shares on BSE and 41.03 lac shares on NSE. The traded volume combined of 44.30 lac shares was 55% of the IPO size of 81.22 lac shares. It was 78% of the non-anchor portion of 56.85 lac shares. Delivery volume was 18.98 lac shares which was 42.85% of the traded quantity. It was 23.37% of the IPO size and 33.39% of the non-anchor portion.

There was only one name which appeared in the institutional trade side of the two exchanges combined. This was a sell trade of 1.22 lac shares by ICICI Ltd -Trading A/c at Rs 417.62 per share.

The poor performance of the share where it failed to even cross the issue price at any point of time, indicates its extreme poor performance. It has closed substantially lower than the open and well below the weighted average indicating that the share was under severe pressure during the day’s trade. Further, the way issue prices and valuations have been pushed through the roof by selling shareholders (mainly Private Equity Investors), Promoters and ever willing and obliging merchant bankers, must realise that this is the beginning of the end. This time the end has come very fast because greed has risen too fast to digest. All the issues to list today have had a by and large poor performance, and these three categories are to blame.

While the issue has fared poorly, the significant poor trading and delivery as a percentage of issue size indicate that there could be more pressure in the coming days.

Krsnaa Diagnostics Limited which had tapped the capital markets with its fresh issue for Rs 400 crs and an offer for sale of 85,25,250 equity shares in a price band of Rs 933-954 listed on the bourses and gained 3.45%. The discovered price on BSE was Rs 1,025 at which price 91,817 shares were traded. On NSE, the discovered price was Rs 1,005.55 at which price 12,80,328 shares were traded.

The company had earlier completed allocation to anchor investors. The company allotted 56,28,937 shares to 36 anchor investors comprising of 44 entities. The highest allotment was made to 5 anchor investors who were each allotted 4,08,810 shares or 7.26% of the anchor book. The top five anchors were therefore allotted 36.3% of the anchor portion.

The QIB portion was subscribed 49.83 times, HNI portion was subscribed 116.30 times while Retail portion was subscribed 42.04 times. Employee portion was subscribed 0.98 times. There were 21.01 lac applications and on basis of applications, the retail issue was subscribed 20.63 times. The overall issue was subscribed 64.40 times. The cost of funding was between Rs 200-205. Leveraged investors have lost money in this IPO as the stock at no time crossed a level of even Rs 150 gain. Clearly, markets overestimated the worth of this share and subscribed it more than the gains it could sustain. At the closing price, leveraged HNI’s have lost money in the issue.

The high of the day on BSE was Rs 1,099.50, low was Rs 961.45 and the close was Rs 990.75. The gain was Rs 36.75 or 3.85%. On NSE, the high of the day was Rs 1,099.70, low was Rs 960 and the close of the day was Rs 987, a gain of Rs 33 or 3.46%.

The weighted average of the day was Rs 1026.76 on BSE and Rs 1026.89 on NSE. The traded volume was 4.30 lac shares on BSE and 83.08 lac shares on NSE. The traded volume combined of 87.38 lac shares was 69% of the IPO size of 127.41 lac shares. It was 1.23 times the non-anchor portion of 71.12 lac shares. Delivery volume was 42.73 lac shares which was 48.90% of the traded quantity. It was 33.54% of the IPO size and 60.08% of the non-anchor portion.
There was only one name which appeared in the institutional trade side of the two exchanges combined. This was a buy trade of 2.30 lac shares by Birla Sunlife Insurance at Rs 1,023.34 per share.
The poor performance of the share where it has closed substantially lower than the open and well below the weighted average indicates that the share was under severe pressure during the days trade. Further, the way issue prices and valuations have been pushed through the roof by selling shareholders (mainly Private Equity Investors), Promoters and ever willing and obliging merchant bankers, must realise that this is the beginning of the end. This time the end has come very fast because greed has risen too fast to digest. All the issues to list today have had a by and large poor performance, and these three categories are to blame.
While the issue did manage to hold on to slim gains, the share is not yet out of the woods and would face harrowing times in the days ahead. To add to the woes of the counter is the fact that delivery volumes are fairly poor compared to average of listing day.