Shares of ICICI Securities Limited (ISEC) listed on the bourses and cut a very sorry figure for themselves. The offer for sale from the company received a poor response and the listing even poorer. The company had tapped the capital markets with its offer for sale for 7,72,49,508 shares in a price band of Rs 519-520. It had earlier allotted 3,30,24,165 equity shares to 33 anchor investors comprising of 58 entities. The highest allocation was done to Pioneer Investment Fund who has been allotted 31,73,100 shares or 9.61% of the anchor allocation.

The issue remained undersubscribed and could garner just 3,520 crs including Rs 1,717 crs from anchor investors. While HAL priced the issue at the lower end of the price band when they got 0.99 times subscribed, ISEC kept its false prestige intact by not pricing it at the lower end of the price band, even though it was a difference of just one rupee.

Coming to the actual subscription, three of the four categories were undersubscribed. The HNI portion was subscribed 0.36 times, Retail 0.88 times and shareholder reservation 0.34 times. The much-touted institution or QIB portion was just about subscribed at 1.04 times. This made an overall subscription of 0.78 times.

Listing day was yet another story. The discovered price on the BSE was Rs 431.10 and Rs 435 on the NSE. This was a steep loss of Rs 89 on the BSE and Rs 85 on the NSE or in percentage terms over 16%. The high of the day was Rs 462.70 and Rs 463 respectively. The open was the low on both exchanges. The close was Rs 445.05 on the BSE, a loss of Rs 74.95 or 14.41% while it was Rs 445.10, a loss of Rs 74.90 or or 14.40% on the NSE. The weighted average of the day was Rs 449.85 on the BSE and Rs 450.46 which was way above the closing prices.

The traded volume on the two exchanges combined was a mere 87.33 lac shares which was 12.90% of the final IPO size of 676.99 lac shares. Delivery volume was 8.73 lac shares which was 18.62% of the traded volume but 2.40% of the IPO size. The traded volume as a percentage of non-anchor portion was 25.19% and delivery volume 4.69%. This indicates that a lot of further delivery must happen to adsorb the free float.

This is the third offering from the ICICI stable and the second to have a poor listing after ICICI Prudential. That issue was sold at Rs 334 and closed at Rs 297.65, a loss of Rs 36.35 or 10.88%. The issue in between from ICICI Lombard made money for investors closing at Rs 681.55 against an issue price of Rs 661. The gain was Rs 20.55 or a tad above 3%.

Its time merchant bankers started realising that it makes sense to leave something on the table for investors so that the interest in the primary markets remain intact. Having an army of merchant bankers, and not being able to get the issue subscribed was an issue by itself. This poor listing performance becomes another issue and more price damage is yet to follow as delivery volumes are too meagre on day one.

Poor pricing and apt fate for an overpriced issue.

Shares of Sandhar Technologies Limited listed on the bourses. The company had tapped the capital markets with its simultaneous fresh issue for Rs 300 crs and an offer for sale of 64 lakh shares in a price band of Rs 327-332. The company allotted 46,30,842 equity shares to 15 anchor investors comprising of 21 entities. The highest allocation made was of 3,31,290 equity shares or 7.15% of the anchor portion. This was made to seven anchor investors.

The QIB portion was subscribed 14.49 times. HNI portion was subscribed 6.39 times and retail portion was subscribed 1.42 times making the overall subscription 6.19 times.

The discovered price was Rs 345 on the BSE and Rs 346.10 on the NSE. The high of the day was Rs 351.45 on the BSE and Rs 351.75 on the NSE. The low of the day which was made towards the end of the day was Rs 318.55 on the BSE and Rs 318.25 on the NSE. The close was Rs 322.55 on the BSE, a loss of Rs 9.45 or 2.85% on the BSE. The same on NSE was Rs 322.15, a loss of Rs 9.85 or 2.97%.

The traded volume on the two exchanges combined was 111.51 lakh shares which was 72.24% of the IPO size of 154.36 lakh shares. Delivery volume was 42.86 lakh shares which was 38.44% of traded volume and 27.77% of the IPO size. If one were to consider the non-anchor portion, the traded volume was 103.20% of the IPO size and delivery was 39.67% of the same. Weighted average was Rs 338.62 on the BSE and Rs 338.97 on the NSE, which was way above the closing price. Very clearly the share was under pressure in the last hour of trading.

Decent debut as far as listing or price discovery is concerned but share slipped thereafter. Its early days and looking at the potential, the share should do better in the coming days.

Shares of Karda Construction Limited listed on the bourses and the same was a disaster. The company had offered 43 lakh shares in a fresh issue in a price band of Rs 175-180. The issue was oversubscribed 2.53 times with QIB portion subscribed 1.53 times, HNI portion subscribed 3.43 times and Retail 2.01 times.

The discovered price on the BSE was Rs 136 which was lower by Rs 44 or 24.44% to the issue price. The share would trade in the trade to trade category for the first ten trading days. There is no discovery price on the NSE and it is taken as the same as the one on BSE.

The high of the day was the 5% circuit that the share is allowed to move and was Rs 142.80 on the BSE and NSE. The low of the day was the discovered price on BSE and Rs 129.20 on the NSE which incidentally was at the lower circuit. The traded volumes were 12.88 lakh shares which was 30% of the IPO size. The delivery volume was 100% as the share was in trade to trade mode of settlement. The weighted average of the day’s trade was Rs 140.78 on the BSE and Rs 139.52 on the NSE.

The closing at Rs 142.80 was lower by Rs 37.20 or 20.67%. There were four entities which bought the share on NSE as per bulk trade data. They bought a total of 4,64,510 shares on the exchange. Considering the size of the issue and the fact that it was trade to trade, this seems surprising. Very clearly there is a common hand behind the same and would need further observation as the days progress.

While the performance is certainly a disaster, the last word on Karda has not been written. It is best for investors to stay away from this share and look at quality companies in the realty space.