The company which was tapping the capital markets with its simultaneous fresh issue to raise Rs 200 crs and an offer for sale of 30,05,770 shares made allocation to anchor investors.
The price band of the issue was Rs 930-938. The company allocated 15,28,789 equity shares to 15 anchor investors comprising of 25 entities. The issue received excellent response and was oversubscribed over 47 times. QIB Portion was subscribed 76.89 times, HNI 101.15 times and Retail portion 8.48 times.

There were issues about the valuation being just under 200 times because of the aberration of raw material spike in the year 2017 which have been since addressed. The issue seems interesting and caters to the bottom of the pyramid with 80% of its Rs 900 cr topline coming at a price point of Rs 5. The total sales by the company in terms of packet per day is at the 1 cr mark and growing.

The issue was open between Friday the 22nd of September and Tuesday the 26th of September.

Details of the subscription are given below: –

Shares of Capacite listed at the BSE and NSE and registered decent gains of 37% on debut day. However, a large portion of the HNI category who had subscribed the issue 638 times were very unhappy as their cost of leverage or funding was between Rs 160-168. They are at a loss at current prices and would probably have to take a call on booking losses if the share does not gain further.

Capacite had tapped the capital markets with its fresh issue in a price band of Rs 245-250 to raise Rs 400 crs. The anchor book was well oversubscribed and a total of 48 lakh shares were allotted to 15 Anchor investors comprising of 25 entities. The issue itself was oversubscribed a massive 183 times and created a record for the subscription. QIB portion was subscribed an unprecedented 638 times and garnered subscription of Rs 39,000 crs against an issue size of a mere Rs 400 crs. Retail subscription was 17.57 times with 14.33 lakh applications. Based on number of applications, the issue was subscribed over 15 times.

The share listed at Rs 399 on both the exchanges which was also the high of the day and was under pressure thereafter because the high funding cost. The low of the day was Rs 335.65 on the BSE and Rs 335 on the NSE. The share closed at Rs 342.60 on the BSE and Rs 342.55 on the NSE. Net gains were Rs 92.60 or 37.04% on BSE and Rs 92.55 or 37.02% on the NSE.

From the above table one can see that the traded volume on the two exchanges was 220.26 lakh shares which was 1.37 times the IPO size of 160 lakh shares. Computed on the non-anchor portion this becomes almost twice the number of shares as non-anchor portion was 112 lakh shares. The delivery volume was 58.39 lakh shares which was 26.51% of traded volume and 36.50% of the IPO size. This means that HNI’s have probably held on and not yet booked losses.

While Capacite had a great listing, many would be unhappy expecting to be bailed out around the 410-420 level. Not everyone can be satisfied.

It’s high time that the regulator SEBI relooks at the bucket of various stake holders in an IPO and puts a ceiling on what an individual can apply. More of that on another day.