Shares of Sheela Foam Limited listed on the bourses on Friday the 9th of December and were off to a flyer. The shares hit the upper circuit in about 35 minutes of trade and continued at the same level when trading ended. The shares which were issued at Rs 730 closed at Rs1032, a gain of Rs 302 or 41.37%.
The company had sold shares worth Rs 510 crs through an offer for sale in a price band of Rs 680-730. It had earlier allotted 20.95 lakh shares to 14 anchor investors comprising of 27 entities. The issue was oversubscribed 5.09 times with QIB portion subscribed 14.51 times, HNI’s 3.35 times and retail 0.44 times. The timing of the issue coming as it did after the demonetisation move affected subscription. The grey market which is normally very active was hardly there and therefore affected subscription from HNI’s who did not get leveraged funds for application. Retail on the lack of grey market activity did not subscribe in large numbers as they sell their application in the grey market.
Not sure whether the circumstances were to the advantage of the company or not. Probably the comparatively lower subscription and no leverage of HNI’s helped in better price discovery and ensured a better listing as there was no selling pressure.
The share opened at Rs 860, a gain of Rs 130 on both the exchanges and in about 30 minutes of trade hit the upper circuit. Having hit the upper circuit it remained there throughout the day. The only trade reported under bulk category was that of three schemes of State Bank of India which together bought 10,65,958 shares at an average of 979.73 per share. This amounts to 15.25% of the IPO size. Earlier the company had bought 1.93 lac shares as anchor investor through seven schemes. This amounted to 9.22% of the anchor book.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 860.00 | 1032.00 | 860.00 | 1032.00 | 302.00 | 41.37 | 973.71 | 865937 | 290521 | 33.55 |
| NSE | 860.00 | 1032.00 | 850.10 | 1032.00 | 302.00 | 41.37 | 969.94 | 4839221 | 1815621 | 37.52 |
| Total | 5705158 | 2106142 | 36.92 |
Combined volume on the two exchanges was 57.05 lac shares which was 0.82 times the IPO size and 1.17 times if one considered the non-anchor portion. Delivery volume was 21.06 lac shares which was 36.92% of traded volume and 30.15% of IPO size. Considering non-anchor delivery percentage was 43.07%.
Share had a great debut helped in no small manner by the interest shown by SBIMF in the company. Reluctant investors have made a killing in the share with gains of over 41% at closing price. If one considers even the weighted average price of Rs 970, the in absolute terms is Rs 240 or 32.87%. No one could be complaining at the listing.
