Indian Railway Finance Corporation Limited (IRFC) which had tapped the capital markets with its fresh issue and offer for sale, listed on the bourses. The total issue was for 178,20,69,000 shares and comprised of a fresh issue of 118,80,46,000 equity shares and an offer for sale of 59,40,23,000 equity shares. The QIB portion was subscribed 3.78 times, HNI portion was subscribed 2.67 times, Retail portion was subscribed 3.66 times and Employee portion was subscribed 43.76 times. There were 25.51 lac applications, which means that on the basis of forms the issue in the retail category was subscribed 2.35 times.

The shares were offered in a price band of Rs 25-26. The discovered price on the bourses was Rs 25 on BSE and Rs 24.90 on NSE. At the discovered price, 39.43 lac shares changed hands on BSE and 623.92 lac shares did so on NSE. The price range on BSE was an open of Rs 25, a high of Rs 25.80, low of Rs 24.30 and close of Rs 24.85. The loss for the day was Rs 1.15 or 4.42%. On NSE the open was Rs 24.90, high Rs 25.80, low Rs 24.35 and close of Rs 24.80, a loss of Rs 1.20 or 4.62%. The traded volume combined on the exchanges was 4082.29 lac shares which was 23% of the IPO size and 33% of the non-anchor portion. Delivery volume was 2151.76 lac shares which was 52.71% of the traded volume and 17.25% of the non-anchor portion. The weighted average of the day’s trade was Rs 25.08 on BSE and Rs 25.07 on NSE. Looking at the substantially lower closing price, it can be inferred that the share was under pressure in the last half hour of trade, implying further weakness.

The company had earlier allotted 53,45,63,007 equity shares to 17 anchor investors comprising 31 entities. The highest allocation of 25.76% or 13.76 cr shares has been made to HDFC equity fund through 3 entities. This is followed by an allotment of 21.58% to Nippon India mutual fund who has subscribed through 5 funds. Government of Singapore comes next with an investment of 16.93% and an additional 4.15% taken by Monetary Fund of Singapore. Invesco is yet another fund who has picked up a reasonable stake of 13.67%, investing through as many as 12 funds.

The government issues never had an anchor allotment and this issue would be setting a new trend in the PSU issues. While the anchor was impressive, it is quite strange that a large entity like LIC is not an investor either as an anchor or as a QIB. Hopefully it could become an investor through the secondary market going forward.

Stovekraft Limited which 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 was subscribed 20.85 times. The issue saw the QIB portion subscribed 8.02 times, HNI portion subscribed 32.72 times and Retail Portion subscribed 26.04 times. There were 5.88 lac applications and on basis of number of lots, the issue was subscribed 20.85 times. This issue consisted of an allocation of 75% for QIB’s, 15% for HNI’s and 10% for Retail. Hence the number of forms is significantly lower than those received in IRFC or Indigo Paints.

Earlier the company had completed allocation to anchor investors. The company 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.

Full details of the subscription in various buckets is given below: –