Chemcon specialty Chemicals which had tapped the capital markets with its fresh issue for 165 crs and an offer for sale of 45 lac shares received excellent response and was subscribed 149.33 times. Response was overwhelming across segments.

Earlier the company had completed allocation to anchor investors. The company allotted 28,05,880 equity shares to 13 Anchor investors comprising of 16 entities. The highest allocation was made to ICICI Prudential and IDFC emerging Business Fund and Dynamic Equity Fund who were allotted 3,08,836 shares or 11.01% of the anchor allocation.

The issue had opened on Monday the 21st of September and closed on Wednesday the 23rd of September. The price band was Rs 338 to Rs 340.

The QIB portion was subscribed 113.54 times, HNI portion 449.14 times and Retail portion 41.21 times. There were 28.05 lac applications and on the basis of lots, the retail portion was subscribed 37.6 times. The cost of funding for leveraged HNI’s is between Rs 205-220.

The full details of subscription are given below: –

Angel Broking Limited which is tapping the capital markets with its fresh issue for Rs 300 cr and an offer for sale of Rs 300 crs completed allocation to anchor investors. The price band is Rs 305-306. The issue opens on Tuesday the 22nd of September and closes on Thursday the 24th of September.

The company allotted 58,82,252 equity shares to 12 anchor investors comprising of 29 entities. The highest allocation was made to ICICI Prudential who was allotted 11,43,758 equity shares or 19.45% of the anchor portion. The next highest allocation was made to Nippon India of 14.22%. Thereafter the allocation of 11.11% or 6,53,562 shares was made equally to HDFC, Goldman Sachs and Aditya Birla Sun Life. In short, 5 anchor investors comprising of 9 entities were allotted 67.22% of the total anchor book.

One feature of the anchor book was the fact that FII’s who have been big investors in India since the beginning of the year chose to give the issue a complete miss.

The full list of anchor investors with their allocation is given below: –

Shares of Route Mobile Limited listed on the bourses and had a dream debut. The company had tapped the capital markets with its fresh issue of Rs 240 crs and an offer for sale of Rs 360 crs. The price band of the issue was Rs 345-350. The issue had opened on Wednesday the 9th of September and closed on Friday the 11th of September. Shares which were issued at Rs 350, debuted at Rs 708 on BSE and Rs 717 on NSE. They closed at Rs 651.10 and Rs 651.30 respectively. The issue was subscribed a massive 74.36 times overall with QIB portion subscribed 91.06 times, 195.61 times, Retail 12.85 times. There were 15.16 lac applications.

The company allotted 51,42,856 equity shares to 15 investors comprising of 23 entities. The highest allotment of 3,94,890 shares or 7.68% of the anchor portion was made to 6 investors or entities. These comprised names such as Franklin, Goldman Sachs, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund and Axis Mutual Fund.

Shares in price discovery opened at Rs 708 on BSE and Rs 717 on NSE. The high which was made immediately on opening was Rs 735 on both exchanges. The low was also an identical Rs 625 on both exchanges. The close Rs 651.10, a gain of Rs 301.10, or 86.03% on BSE and Rs 651.30 on NSE, a gain of Rs 301.30 or 86.09% on NSE. The traded volume was 27.26 lacs on BSE and 291.89 lacs on NSE. The combined volume was 319.16 lac shares which was 1.86 times the issue size and 2.60 times the non-anchor issue size. Weighted average of the day’s trade was Rs 684.95 on BSE and Rs 686.06 on NSE. Seeing the difference in closing price which is lower than the average, indicates that the share was under pressure and the sharp fall from the high to the low which happened quite quickly caused this pressure. Deliveries were 117.28 lacs which was 36.75% of the traded volume. It was 68.42% of the issue size and a massive 97.74% of the non-anchor portion.

On the institutional front, Goldman Sachs bought 24,09,343 shares at Rs 705.95 on NSE in four different accounts while Kuwait Investment Authority bought 5,78,504 shares at Rs 697.25. With almost a fourth of the shares bought by institutional investors, the story of Route Mobile is not over on listing day.

There seems to be anew trend emerging on performance of shares on listing day. The gains on listing day are in the region of 70-100% and delivery in excess of 92%. This trend began with the very first listing after the pandemic began and saw Rossari Biotech gain over 74% and deliveries of 92.68% of the non-anchor portion.

In the case of Happiest Mind, the gains were 123% and deliveries were 92.99%. Here in the case of Route Mobile, the gains were 86% and deliveries were 97.74%. It appears the street’s expectation from primary market has changed or is changing. The belief is that issues would get heavily oversubscribed and that HNI’s would push up the cost of the issue on account of interest on their leveraging. This would ensure that there is a health grey market premium for the same and then all successful applicants whether they be QIB, HNI or Retail would make a killing and exit lock, stock and barrel on day one. The new entrants into the company who bought these shares would believe that this is the best opportunity and there is more upside as the share performs.

As long as everybody is happy, who am I to have any complaints.