The REIT from Brookfield was subscribed 7.97 times. The trust had tapped the capital markets with its primary offer of units in a price band of Rs 274-275 to raise Rs 3,800 crs. The issue was open from Wednesday the 3rd of February to Friday the 5th of February. The company had earlier allotted 6,21,80,800 units to 33 anchor investors comprising of 39 entities. The highest allocation of 1,27,63,600 units or 20.5% has been made to 2 entities of HDFC. This is followed by SBI Life who has been allotted 83,63,600 units or 13.5% of the anchor portion. The third highest is to TATA AIG who has been allotted 61,81,800 units or 9.9%. This effectively means that the top three anchor investors which incidentally happen to be all domestic, have been allotted 43.9% of the total anchor book.

The issue was subscribed 4.80 times by QIB’s and 11.78 times by HNI’s and 7.97 times overall. The issue garnered subscription of 16,663 crs excluding the anchor portion of Rs 1,710 crs. This effectively means that the company raised a total subscription of Rs 18,373 crs. Compared to this number, the REIT from Mindspace raised much more. That issue had a strategic investor allocation of Rs 1,125 crs and an anchor portion of Rs 1,518.7 crs. Over and above this Rs 2,643 crs, the issue received subscription of Rs 24,140 crs, making a total of Rs 26,783 crs. Broadly speaking the issue from Brookfield as compared to Mindspace received a third less, as subscription.

While there could be a number of reasons for the same, it must also be borne in mind that the environment in August 2020 when Mindspace tapped the markets and now when Brookfield has done so is not comparable. Effect of covid-19 is behind us and further the vaccine having being found and now being administered, makes many things much clearer. Markets have moved up significantly with BSESENSEX now at around 51k against 38k at that time. I believe there is difference in quality of the REIT which has resulted in this difference in subscription. Even more significant in my viewpoint is the perception of the two offerings.

The real proof of the pudding would be in the eating which is when the REIT lists for trading. When Mindspace had listed, it did so with gains of Rs 28-30 or 10% to the issue price of Rs 275, which is the same as that of Brookfield. The area under the REIT is also similar at 28 million square feet for both trusts, if one were to add the 10.3 msf completed area, plus 3.7 msf right to develop, plus 8.3 msf identified assets, and 6.7 msf right of first offer as mentioned by Brookfield.

It would be really interesting to note the performance of Brookfield when it lists around the middle of February.

Shares of Stovekraft Limited debuted on the bourses and closed with gains of 15.83% on BSE on listing day. The company had issued shares at Rs 385 and they closed at Rs 445.95 on BSE and Rs 438.45 on NSE. The company had tapped the capital markets with its fresh issue of Rs 95 crs and an offer for sale of 82.5 lac shares in a price band of Rs 384-385. The issue was open between Monday the 25th of January and Thursday the 28th of January. The company had allotted 48,22,890 equity shares at Rs 385 to 15 anchor investors comprising of 32 entities. The highest allocation of 5,19,460 shares or 10.77% was made equally to four investors namely, Nippon India, Goldman Sachs, Ashoka India Equity Fund and Sundaram Mutual Fund. This was followed by an equal allotment of 3,63,622 equity shares or 7.54% to three anchor investors. This meant that 65.70% of the anchor book was distributed amongst seven anchor investors.

The discovered price was Rs 467 on BSE and Rs 498 on NSE. The traded volume at discovery price was 48,645 shares on NSE and 10,58,448 shares on NSE. The price differential between the two exchanges of Rs 31 or about 8% of the issue price is steep and unheard of if compared say with the last ten listings.

The high on BSE was Rs 495.55, low of Rs 435.05 and the close was Rs 445.95. The gain was Rs 60.95 or 15.83%. The high was the same as the open on NSE at Rs 498, the low was Rs 435 while the close was Rs 438.45, a gain of Rs 53.45 or 13.88%. The traded volume was 117.15 lac shares which was 1.09 times the IPO size of 107.17 lac shares, and 1.99 times the non-anchor portion size of 58.94 lac shares. Delivery volume of 42.50 lac shares was 36.28% of traded volume, 39.66% of IPO size and 72.10% of non-anchor portion. Weighted average of the day’s trade was Rs 458.84 on BSE and Rs 460.97 on NSE. The weighted average is substantially higher than the closing price, implying that there was selling pressure on the stock towards the end of first day.

There were two buy trades on NSE and three sell trades reported on day one. Besides this there was a buy and sell trade reported by one HNI which seems a little odd. This HNI (Jain Sanjay Popatlal) bought 3 lac shares at the price discovery of Rs 498 and sold them at a price of Rs 453.53, losing Rs 44.47 per share or Rs 133.41 lacs. The whole episode looks a little odd. The buy trades were from Nippon India Mutual Fund who bought 7 lac shares at Rs 455.87 and Unifi Capital Private Ltd who bought 6.69 lac shares at Rs 453.07. It may be mentioned here that Nippon India is also an anchor investor in the issue. On the sell side were Copthall Mauritius who sold 2,31,370 shares at Rs 462.48, Integrated Core Strategies who sold 1,92,939 shares at Rs 462.59 and Société General who sold 1,80,000 shares at Rs 451.24. For a company which had a net non-anchor issue size of just about 58.94 lac shares, there was exceptional institutional activity.

Finally, the share has had a decent listing but was under pressure towards the end of the day. With markets being in the grip of bullish fervour, performance in the quarter gone by and ongoing quarters would be key for future movement hereon.

Shares of Home First Finance Limited listed on the bourses and had a great start debuting at Rs 612.15 on BSE against an issue price of Rs 518. The high on BSE was Rs 639.50, low Rs 521.65 and the close Rs 527.40. The gain was Rs 9.40 or 1.81%. On NSE the discovered price was Rs 618.80, high Rs 640.00, low Rs 522 and close Rs 527.55. The gain was Rs 9.55 or 1.84%.

Home First Finance Limited had tapped the capital markets with its fresh issue of Rs 265 crs and an offer for sale of 171.56 lac shares, was oversubscribed 26.71 times. The issue was in a price band of Rs 517-518 and was open from Thursday the 21st of January to Monday the 25th of January.

Earlier the company had allotted 66,81,766 equity shares to 23 anchor investors comprising of 51 entities. The highest allocation of 6,37,056 equity shares was made to 2 entities of Nomura. This was 9.54% of the anchor allocation. This was followed by an identical allocation of 5,40,540 shares or 8.09% to ICICI Prudential, Birla MF and Nippon India. This was followed by 4,82,608 shares or 7.22% to Fidelity.

The QIB portion was subscribed 52.63 times, HNI portion was subscribed 39.08 times while Retail portion was subscribed 6.60 times. There were 15.12 lac applications and on the basis of lots, the Retail portion was subscribed 5.43 times. Average lot size subscribed was 1.2 lots.

The volume at the discovered price was 1,18,146 on BSE and 24,42,406 on NSE. The traded volume on the two exchanges combined was 265.58 lac shares which was 1.19 times the IPO size of 222.72 lac shares and 1.70 times the non-anchor portion of 155.90 lac shares. Delivery volume was 103.06 lac shares which was 38.81% of the traded volume and 66.11% of non-anchor portion. The weighted average of the day’s trade was 588.97 on BSE and Rs 589.34 on NSE. The sharp fall in prices in the last half hour of trade indicates that in all probability HNI’s were sellers and that led to the difference between weighted average and closing price. There were no institutional trades on either BSE or NSE which indicates that QIB’s did not participate in either selling or buying on day one.