Bears were at the receiving end on Tuesday when we had a huge rally and forced bears to cover their shorts. The net outcome was a massive 521 points gain on that day. The remaining days of trading saw some of these gains being surrendered for the week to end at 28,077.18 points, a gain of 403.58 points or 1.46%. NIFTY was up 109.65 points or 1.28% at 8,693.05 points. Action in the midcap and smallcap space continues unabated and is ahead of the benchmark indices.

Shares of Endurance Technologies Limited listed on Wednesday and had a stellar debut gaining 37% of day one. The shares which were issued at Rs 472 closed at Rs 623.40, a gain of Rs 151.40 or 32.08%.

The government sold 9 cr shares of NBCC at the floor price of Rs 246.50 on Thursday and Friday. This way they have been able to raise Rs 2,200 crs and inch up to their divestment target.

The week ahead sees expiry of October series futures. The series is up with gains of the last week as the same was flat prior to it. With just about 1% up, things could go either way and I believe that there is a downward bias with result season not throwing up to many pleasant surprises.

There are two IPO’s opening this week. The first is from PNB Housing Finance Limited looking to raise Rs 3,000 crs in a price band of Rs 750-775. The issue opens on Tuesday the 25th of October and closes on Thursday the 27th of October. The second issue is from Varun Beverages where there is a simultaneous offer for sale of 1 cr shares and fresh issue of 1.5 cr shares. The price band is Rs 440-445. The issue opens on Wednesday the 26th of October and closes on Friday the 28th of October.

Markets are looking under pressure and the momentum has broken. Stay cautious and use rallies to reduce exposure.

Shares of Endurance Technologies Limited listed on the BSE and NSE and were off to a flying start. The company had come to the markets with its offer for sale of 2.46 cr shares in a price band of Rs 467-472. Endurance had received excellent response in the subscription with the issue being oversubscribed 43.84 times. The QIB portion was subscribed 53.43 times, HNI 127.07 times and Retail 2.69 times. The company had earlier allotted 73.8 lakh shares to 24 Anchor investors comprising of 38 entities.

The price discovery of shares was done at Rs 570 on the BSE and Rs 572 on the NSE. The share price was on an uptrend throughout the day and shares closed at Rs 647.70 on the BSE and Rs 646.90 on the NSE, a gain of Rs 175.70 or 37.22% and Rs 174.90 or 37.06% respectively.

From the table above one can see that the share reported brisk volume and saw a combined traded volume of 446.47 lakh shares which was 1.81 times the IPO size of 246.13 lakh shares. The delivery volume 607.was 115.75 lakh shares which was 25.93% of the traded volume and a massive 47.03% of the IPO size. This effectively means that by and large the retail and HNI portion has been delivered on day one.

The weighted average of the day was Rs 607.18 on BSE and Rs 606.82 on the NSE. There was one institutional trade reported which saw Smallcap World Fund buying 13.1 lakh shares at an average price of Rs 602.45.selling shareholder got hisn

The issue has done extremely well. There is one more thing that investors should remember this share for. This company was to go public in 2010, but the issue was cancelled/withdrawn because the selling shareholder got his exit by selling the entire stake to another investor. This issue provided an exit to that investor, effectively being an issue which has provided back to back exits for two investors over a long period of time.

A great debut for an issue which had received excellent support from all buckets in the subscription stage.