Kalyan Jewellers Limited which had tapped the capital markets with its fresh issue of Rs 800 crs and an offer for sale of 375 crs in a price band of Rs 86-87 listed on Friday and had a bad start at the bourses. The share debuted at Rs 73.90 and recovered marginally but closed the day at Rs 75.30, a loss of Rs 11.70 or 13.45%.

The discovered price was Rs 73.90 on BSE and Rs 73.95 on NSE. Thereafter on BSE, the high was Rs 81.00, the low was Rs 73.00 and the close was Rs 75.30. On NSE, the high was Rs 81.00, the low was Rs 72.90 and the close was Rs 75.20, a los of Rs 11.80 or 13.56%.

The traded volume was 550.01 lac shares which was 41% of the IPO size of 1350.57 lac shares. It was 58% of the non-anchor portion of 946.09 lac shares. Delivery volume was 194.80 lac shares which was 35.42% of the traded volume. It was 14.42% of the issue size and 20.59% of the non-anchor portion. Weighted average of the day’s trade was Rs 77.31 on BSE and Rs 77.13 on NSE. The share as under pressure at the end of day.

Earlier the company had completed its allocation to anchor investors. The company allotted 4,04,48,275 equity shares at the top end of the band to 12 anchor investors comprising of 15 entities. The issue had opened on Tuesday the 16th of March and closed on Thursday the 18th of March.

The highest allocation was made to Government of Singapore who was allotted 1,17,27,992 equity shares or 29% of the anchor allocation. Another entity, Monetary Authority of Singapore was allotted 20,65,032 shares or 5.11% of the allocation making the total for Singapore Government, 34.11% of the anchor book. The next highest allocation was Sundaram Mutual Fund who was allotted 91,95,292 equity shares or 22.76% of the shares in three schemes. The third highest allocation was to Calypso Global Investment Fund who was allotted 57,47,036 equity shares or 14.21% of the shares.

The issue was subscribed 2.79 times by QIB’s, 1.93 times by HNI’s, 2.85 times by Retail and 3.78 times by Employees. There were 5.94 lac applications and on basis of lots, the retail portion was subscribed 2.17 times. Considering that this issue at Rs 1,175 crs was almost double in size compared with the other issues in the market currently, the number of applications received in this issue were substantially lower.

There were no institutional trades reported either on the buy side or the sell side on this counter. Considering the size of the issue of over 1350 lac shares, one would have expected some institutional activity to happen. With poor volume, one could expect the share to be under some pressure in the coming days until a fair amount of shares change hands.

All in all, it was a poor listing and it probably matches with the sector not being in favour and the issue being overpriced.

Barbeque Nation Hospitality Limited which had tapped the capital markets with its fresh issue of Rs 180 crs and an offer for sale of 54.57 lac shares was subscribed 5.97 times. QIB portion was subscribed 5.11 times, HNI portion was subscribed 3.10 times, Retail portion was subscribed 13.13 times and Employee quota saw no subscriptions. There were 2.98 la applications and on basis of lots the retail issue was subscribed 9.94 times.

Earlier the company had completed allocation to anchor investors. The price band is Rs 498-500. The company allotted 40,57,861 equity shares to 15 anchor investors comprising of 21 entities.

Each investor was given 2,70,510 equity shares or 6.67% of the anchor allocation. The anchor investors consisted of 7 foreign portfolio investors, 5 mutual funds, 2 Alternative investment Funds and 1 Life insurance company.

The issue was open from Wednesday the 24th of March and closed on Friday the 26th of March.

Full details of subscription are given below: –

Laxmi Organics Limited which had tapped the capital markets with its fresh issue of Rs 300 crs and an offer for sale of Rs 300 crs did reasonably well on listing day and gained over 26%. Earlier the company had received excellent response and was subscribed 106.81 times. The issue had opened on Monday the 15th of March and closed on Wednesday the 17th of March 2021. The price band was Rs 129-130.

Earlier the company had completed allocation to anchor investors. The company allotted 1,38,46,153 equity shares to 15 anchor investors comprising of 23 entities. Shares were allotted at the top end of the price band at Rs 130.

There were just two levels of allotment where nine investors have been given an equal 10,78,860 equity shares or 7.78% of the anchor book. The second level is where six anchor investors have been given 6,92,300 equity shares or 5% of the anchor book. The list includes a fair mix of FPI, mutual funds and insurance companies.

The QIB portion was subscribed 175.43 times, HNI portion was subscribed 217.62 times and Retail portion was subscribed 20.11 times. There were 23.35 la applications and on basis of lots, the retail portion was subscribed 16.5 times.

The discovered price was Rs 156.20 on BSE and Rs 155.50 on NSE. The traded quantity at the discovered price was 3,31,917 shares on BSE and 59,54,311 shares on NSE. The high of the day on BSE was Rs 174.50, low was Rs 143 and the close was Rs 164.60, a gain of Rs 34.60 or 26.62%. The high of the day was Rs 174.60 on NSE, low was Rs 143.25 and the close was Rs 164.45, a gain of Rs 34.45 or 26.50%.

The traded volume on the two exchanges combined was 739.37 lac shares which was 1.59 times the issue size of 464.04 lac shares and 2.27 times the non-anchor portion of 325.58 lac shares. The delivery volume was 243.36 lac shares which was 32.91% of the traded volume. It was 52.44% of the issue size and 74.75% of the non-anchor size. There were two institutional trades on the buy side reported on the exchanges. In the first trade, 16.75 lacs were bought by Goldman Sachs at Rs 155.71, while in the second trade 15 lacs shares were bought by Plutus Wealth Management at Rs 155.50.

The weighted average of the days trade was Rs 159.08 on BSE while it was Rs 159.99 on NSE. The leveraged HNI who had borrowed money and applied for shares has not yet broken even at the above price. The delivery percentage is reasonably high at 75%. Probably another couple of days, and those still left would sell.

In conclusion, the listing of Laxmi Organics could be summed up as satisfactory, after considering the couple of earlier issues which saw the share price dip on day one in the case of two of them, and one on day two. Considering the poor performance of IPO’s in this bunched up lot, Laxmi has stood out and definitely deserves to be praised for its performance.