The primary issue from Likhitha Infrastructure which had tapped the capital markets, listed on the bourses and registered gains of 13.83% on day one. The company had tapped the capital markets with its issue of 51 lac shares in a price band of Rs 117-120. The issue was open from Tuesday the 29th of September to Thursday the 1st of October. The issue had failed to receive adequate subscription in the QIB portion and was forced to extend the same. The revised price was changed to Rs 116-120. The revised dates or extended dates saw the issue close on Wednesday the 7th of October.

The extension of the issue saw the company issue a corrigendum and change the QIB portion from 50% of the issue size to 1%. This is something which would probably be a trend setter as it has never happened before. Anyway, maybe this is part of the fast tracking of capital markets and facilitating of fund-raising initiatives of the regulator, SEBI.

The issue saw the QIB portion subscribed 21.99 times, HNI portion subscribed 1.54 times and Retail portion subscribed 23.71 times. The overall issue was subscribed 9.51 times.

The discovered price on BSE was Rs 130.10. The high of the day was Rs 136.60 on BSE which was also the close of the day. The low of the day was Rs 125. On NSE, the high of the day and close was Rs 136.50 while the low of the day was Rs 125.00. The share gained Rs 16.60 or 13.83% on BSE. On NSE it gained Rs 16.50 or 13.75%.

The share would trade in ‘trade to trade’ category for ten trading sessions as the size of the issue is below Rs 250 crs. The share saw a trading volume of 16,80,240 shares which was 32.95% of the issue size and 100% of the traded volume. The weighted average of the days trade was Rs 131.38 on BSE and Rs 131.24 on NSE.

There were three trades reported in the bulk category on NSE on day one. The first was a buy trade of 5.50 lac shares at Rs 131.10 by HET Finance Pvt Ltd. The second was a sell trade by Hsquare Globetrade LLP for 5.50 lac shares at Rs 131.09. The third was a sell trade by Yogesh Kumar Sanghvi for 1,03,002 shares at Rs 130.52. For a delivery volume of 16.80 lac shares, these were large bulk trades.

All in all, the share had a decent listing.

Shares of UTI Asset Management Company Limited (UTI AMC) listed on the bourses and had a poor showing, losing 14% on day one. The company had tapped the capital markets with its offer for sale of 3,89,87,081 shares in a price band of Rs 552-554. The issue was open from Tuesday the 29th of September and had closed on Thursday the 1st of October. The company had earlier completed allocation to anchor investors. The company allotted 1,16,36,124 equity shares to 33 anchor investors comprising of 67 entities. Included in this list, are 15 domestic funds who subscribed through 49 schemes. The highest allocation was made to ICICI Prudential who was allotted 11.61% of the anchor allocation. This was followed by allocating between 7.73% to 7.75% to three mutual funds, namely HDFC AMC, Aditya Birla Sunlife and Reliance Nippon India.

The issue was subscribed 2.31 times overall. The QIB portion was subscribed 3.34 times, HNI portion subscribed 0.93 times, Retail portion subscribed 2.32 times and Employee portion subscribed 1.34 times.

The opening price or discovered price on BSE was Rs 490.25 while it was Rs 500 on NSE. The high of the day was Rs 530 on BSE and Rs 529.95 on NSE. The low of the day was Rs 471.10 on both exchanges. The close of the day was Rs 476.60, a loss of Rs 77.40 or 13.97% on BSE. It was Rs 476.20, a loss of Rs 77.80 or 14.04% on NSE.

The traded volume on the two exchanges combined was 121.77 lac shares which was 0.31 times the issue size and 0.45 times the non-anchor issue size of 273.51 lac shares. Delivery volume was 61.65 lac shares which was 50.63% of the traded volume. It was 15.82% of the issue size and 22.54% of the non-anchor issue size. The weighted average of the day’s trade was Rs 507.21 on BSE and Rs 506.48 on NSE.

It was a poor show considering this was India’s first mutual fund ever and has a history of over 55 years. With a delivery percentage of just about 22.54% of the non-anchor book, the share has to stabilise over next couple of weeks before one could say that the share is out of the woods.

After a spate of issues which saw listing day gains in the region of 80-100%, we have an issue where there have been losses on day one. This is the second issue after Angel broking to record losses on day one.

Mazagon Dock Shipbuilders Limited which had tapped the capital markets with its offer for sale of 3,05,99,017 equity shares made its debut at the bourses yesterday. The company had issued shares at Rs 145. Its price band was Rs 135-145. The issue was open between Tuesday the 28th of September and Thursday the 1st of October. This being an issue from the government of India there was no anchor allocation.

Shares debuted at Rs 216.25 on BSE and Rs 214.90 on NSE. The high of the day was Rs 216.65 on BSE and Rs 216.95 on NSE. The low of the day and the close was the same at Rs 173.00 on BSE and Rs 171.95 on NSE which were the lower circuits of the day.

The issue had received excellent response and was subscribed 157.41 times overall. The QIB portion was subscribed 89.71 times, HNI portion 678.88 times, Retail portion 35.63 times and Employee portion 3.88 times. There were over 28 lac applications. The cost of funding for the leveraged HNI was between Rs 141-151 depending on whether he paid 7.5% or 8% interest.

The share was under pressure from the start and never seemed to be comfortable at any point of time. This pressure was from the HNI’s whose bucket was for 45 lac shares. They created complete chaos and tried to recover some of their losses by shorting the market and then trying to buy back cheaper.

The traded volume on the two exchanges was 435.25 lac shares which was 1.42 times the IPO size of 305.99 lac shares. Delivery volume was 198.55 lac shares which was 45.62% of the traded volume and 64.89% of the IPO size. Weighted average of the day’s trade was Rs 187.88 on BSE and Rs 186.64 on NSE. The closing price was Rs 173 on BSE, a gain of Rs 28 or 19.31%. The closing price on NSE was Rs 171.95, a gain of Rs 26.95 or 18.59%.

Considering the cost of funding and the colossal support or interest the share had garnered it could be termed a poor listing day show. On a different thought, it could be time that the regulator looks at the funding mechanism employed by HNI’s and re-evaluates the entire system.