Sterling and Wilson Solar Limited which had tapped the capital markets with its offer for sale for Rs 3,125 crs was closed having received bids for 0.85% of the issue post anchor allocation.

The company had earlier completed allocation to anchor investors. The company allotted 1,80,28,846 equity shares to 21 anchor investors comprising of 27 entities. The price band of the issue is Rs 775-780.

The highest allocation was made to Nomura India Investment Fund Mother Fund who was allotted 28.84 lakh shares or 16% of the anchor book. This was followed by Reliance Capital Trustee Co Ltd who was allotted 25.64 lac shares or 14.22% in three funds. Indian funds were allotted 20.27% of the anchor book while Foreign funds were allotted 79.73% of the anchor book.

The issue was open from Tuesday the 6th of August till Thursday the 8th of August.

The QIB portion was subscribed 1.02 times, HNI portion 0.89 times and Retail portion 0.30 times. There were 40,161 applications received.

This being an offer for sale with 75% allocation to QIB’s, the issue needed to receive 100% subscription from Anchor Investors. The company had earlier allotted 1,80,28,846 to anchor investors and now received bids for 1,23,32,273 shares from QIB investors. This made a total of 3,03,61,119 shares which was 75.78% of the QIB book and this portion was fully subscribed.

Adding the retail and HNI portion the total subscription was 3,69,61,681 which was 92.25% of the issue size of Rs 3,125 crs. Having fulfilled the 75% QIB portion which was fully subscribed, the issue is treated as subscribed.

Affle (India) Limited made its debut on the bourses and registered gains of over 17%. The company had tapped the capital markets with its simultaneous fresh issue and offer for sale. The fresh issue was for Rs 90 crs and the offer for sale of 49,53,020 equity shares. The issue had opened on Monday the 29th of July and closed on Wednesday the 31st of July.

The issue was subscribed 86.49 times overall with QIB portion subscribed 55.31 times, HNI portion subscribed 198.69 times and Retail portion subscribed 10.96 times. HNI average cost of funding was between Rs 215-220 with interest rates of about 7.75% for seven days.

The company had earlier allotted 27,72,483 equity shares at the top end of the price band of Rs 740-745 to 15 anchor investors comprising of 28 entities. The largest allocation was made to Aberdeen and Franklin Templeton who were each allotted 3,05,640 shares or 11.02% of the anchor allocation. They were followed by seven investors who were allotted 2,28,200 shares or 8.23% and the last category of 6 investors were allotted 93,967 equity shares or 3.39% of the anchor book.

There is an existing investor in the company, Malabar India Fund who was allotted 2,28,200 shares.

The discovered price on BSE was Rs 929.90 while it was Rs 926 on the NSE. In the price discovery period, 5.88 lac shares were traded on NSE and 0.34 lac shares on BSE. The high of the day was Rs 958.30 on BSE and Rs 958.70 on NSE. The lows were made after the highs were recorded and they were almost at the issue price. BSE low was Rs 751.05 while NSE low was Rs 750. The closing price was Rs 875.10, a gain of Rs 130.10 or 17.46% on the BSE. The closing on NSE was Rs 873.65, a gain of Rs 128.65 or 17.27%. The traded volume was 8.62 lacs on the BSE and 83.61 lacs on the NSE, making a total of 92.24 lacs. This turnover was 1.5 times the IPO size of 61.61 lac shares and 2.72 times the non-anchor portion of 33.88 lac shares.

Delivery volume was really huge at 29.48 lac shares which was 31.97% of the traded volume, 47.86% of the IPO size and 87.01% of the non-anchor portion. This kind of delivery on opening day has not been seen in recent times. It indicates that besides the leveraged HNI who has lost money in this deal, a large portion of QIB’s have also sold on day one. The weighted average of the day was Rs 877.03 on BSE and Rs 886.58 on NSE.

The range of the day, difference between low and high was big at Rs 207.25 on BSE and Rs 208.70 on NSE. If one were to take this as a percentage of issue price it was about 28%.

There were two bulk trades mentioned. The first was Reliance Mutual Fund buying 9.5 lac shares at Rs 918.19. The second was Kuwait Investment Authority buying 2,62,958 shares at Rs 885.27. With 12.12 lac shares details available, one wonders who bought the remaining 17.3 lac shares. The interesting part is that HNI’s have sold at a loss, retail investors could have booked profit and a large number of QIB’s have also sold and booked profits.

Going forward one can expect a period of sideways movement in the stock before a sharp movement either side. Mu gut fell says this movement would be on the upside. Finally, in conclusion the share had a decent outing but the volatility intra-day sure did cause a heart attack to many people.

Spandana Sphoorty Financial Limited which had tapped the capital markets with its simultaneous offer of a fresh issue of Rs 400 crs and offer for sale of 93,56,725 equity shares was just about subscribed. The QIB portion was subscribed 3.11 times while the remaining two remained undersubscribed. HNI portion was subscribed 0.55 times while retail was subscribed just 0.09 times.

Market conditions have been bad and quite tough. While for the sake of blaming one could always say that the change in subscription through UPI was responsible for the poor retail subscription, it should be noted that while Spandana received just 21,727 forms, the previous issue from Affle (India) received 2.97 lac forms. Incidentally Affle (India) was the first issue which came under the UPI regime. The price band for Spandana was Rs 853-856. The issue had opened on Monday the 5th of August and closed on Wednesday the 7th of August.

Earlier the company had allotted 42,08,886 equity shares to 15 anchor investors comprising of 18 entities. The highest allocation was made to four investors of 4,43,938 equity shares representing 10.5% of the anchor allocation to Wells Fargo, Bajaj Allianz Life Insurance, Goldman Sachs and ICICI Prudential Insurance.

Very clearly QIB’s whether they applied in anchor or the normal portion were enthused by the issue while non-institutional investors shunned the issue. It is for the merchant bankers to understand why there was complete apathy from this segment of investors.

The full details of subscription are given below: –