Thinksoft Global services Limited listed on the NSE and the BSE yesterday. This company had the dubious distinction of not being subscribed and having to extend its closing date and reducing the price as well. It was only after this that the issue was subscribed.

At the end of the day it has set up two more records and they are the highest turnover to shares issued and highest delivery percentage of shares offered. Thinksoft had offered a total of 36.46 lakh shares by way of an offer for sale and fresh issue combined. The total traded volume yesterday as visible from the table appended below shows that a total of 4.417 cr shares or 12.12 times the issued capital were traded on day one. The second dubious distinction is that of the total shares traded 26.68 lakh shares or 6.04% of the traded shares were delivered on day one. This delivery of 26.68 lakh shares when compared to the shares offered in the IPO comes to a staggering 73.18%.

The last issue which was listed was Euro Multivision and in that case the traded volume was 4.91 times the shares offered and the delivery percentage was 66.5% with one difference, that share crashed, Thinksoft has gained.

The share opened at the BSE at Rs 100 and on the NSE at Rs 126, which were the respective lows as well. The shares have risen thereafter in an almost non-stop fashion. The highs made were Rs 172 and Rs 169.80 respectively. The share closed at Rs 164.30 and Rs 164.40 respectively. The net gain on day one was an impressive 31.5%.

It is interesting that just four persons were allotted 8,72,064 shares or 23.92% of the shares offered in the IPO. No details of who has bought or sold these shares is apparent but one would tend to believe that facts like issue not being subscribed, issue seeing huge turnover and extremely high delivery to issued shares and the fact that almost one fourth the shares allotted are to just four individuals – all point to the share being an ideal target for market manipulations.

Investors looking at trying to make a quick buck would do well to stay away from such a share.

The issue consisted of a dual offer with an offer for sale of 22.96 lakh shares and a fresh issue of 13.5 lakh shares. The total issue therefore was for 36.46 lakh shares.

The share listed at the BSE and NSE today and the listing price was Rs 100 and Rs 126 respectively. The share has made a low of Rs 100 which was the open on the BSE and Rs 126 on the NSE also the open of the day.

The share has seen combined trading on both the exchanges of 68.52 lakh shares which is 1.88 times the capital which was issued in the IPO. The trading is indeed very brisk and the share is trading at a premium of 17% currently after thirty minutes of trading. Let us see the delivery percentage and price at the end of the day.

In recent listings this is probably the worst closing for any issue on day one.

Trading in shares of Euro Multivision Limited began today on the BSE and the NSE. The company had come out with its IPO in a price band of Rs 70-75 and the shares were allotted at the top end of the price band of Rs 75. The company is setting up a project to manufacture photo-voltaic cells in Bhachau in Gujarat. The company is presently engaged in the business of manufacturing CD’s or compact disc recordable. The issue was for 86 lac shares and was open for subscription during the 22nd and 24th of September 2009.

Trading began on a brisk note and in the first thirty five minutes of trade over 103 lakh shares or more than the issued capital was traded. The opening price on the BSE was Rs 75 while on the NSE it was Rs 70. The share has been continuously slipping and it would have to be seen where it attracts support.

Trading in shares of Pipavav Shipyard Limited began today with a listing ceremony at The NSE in Mumbai. The shares are listed on both the BSE and the NSE. The company had come out with its IPO by issuing 8.54 cr shares in a price band of Rs 55-60 during the period 16th to 18th September 2009. The issue price was fixed at Rs 58.

Trading began on a brisk note and in the first twenty five minutes of trade 2.93 cr shares were traded. Today’s newspapers carried a news item that the company has been technically qualified to bid for over 1 billion $ worth of ships for the coast guard and Indian Navy.

The shares listed on the BSE at Rs 60.05 and on the NSE at Rs 61.10 against the issue price of Rs 58. The table appended below shows the brisk volume and in less than half an hour already 35% of the IPO offer has been traded. The share appears to be facing some selling pressure. More of it at the end of the day.

The shares listed at Rs 1019 and Rs 1096 on the BSE and NSE respectively. The highs made were 1156 and 1156.70 respectively. The setting for listing day was what one could dream of. Markets were buoyant with the BSESENSEX gaining a staggering 273 points or 1.63% to close at 17126.84. The NSENIFTY gained 77.10 points or 1.54% to close at 5083.95. The previous day saw big brother ONGC put in a strong performance and gained Rs 32.35 or 2.79% to close at Rs 1189.65. A perfect setting for listing and OIL delivered. The stock closed at Rs 1140.55 and Rs 1135 on the BSE and NSE respectively.

From the data given above it is clear that there has been a high delivery percentage on day one. Close to 37% of the shares traded were delivered. What is even more important is the fact that almost 40% of the 2.64 cr shares issued in the IPO have been delivered on day one. Very clearly these shares bought have not been by weak hands but by institutional investors. The most surprising thing that has happened is that the difference or gap between OIL and ONGC is now about Rs 26 or about 2.22%. The general consensus at the time of the IPO was that there should be a discount of about 10% between the price of ONGC and OIL as they had similar valuations and ONGC was ten times the size of OIL. The reason for the poor response was the belief was the overpricing. The next few days alone will clear the confusion on whether people perception was correct or incorrect.

In conclusion OIL India Limited won the day for investors on day one.

Very rarely does one look for listing gains in a debenture issue but this issue was very well received. In early trading today the debentures of Rs 1000 face value had made a high of Rs 1055. 

Information from the exchanges shows that while atleast two institutional investors sold on day one, one investor has bought as well. The volume on the BSE and the NSE was 104 lacs and 131 lacs respectively. The combined volume of 235 lacs in the day’s trade was poor. The delivery percentage was 16.86 % and almost 40 lac shares were sold for delivery on day one. This delivery is 52.92 % of the shares offered in the IPO.

In a television interview after the listing the Managing Director of the company Mr Ajay Swarup has indicated that the company is likely to earn an EPS of Rs 12-13 for the FY 09-10 based on the fully diluted equity. The company has also signed an agreement for bottling of Jagatjit’s products. The prospects of decent earnings did not help the company survive the onslaught and the share tumbled to close at Rs 90.75 on the BSE and Rs 90 on the NSE respectively. The share lost close to 10% at close and was marginally higher than the low of the day.

In conclusion, though the share had given listing gains in the early part of the day, clearly the same were unsustainable and the share cracked under pressure. History books will record the event as one more IPO which cracked on listing day and closed well below issue price.

In a television interview after the listing the Managing Director of the company Mr Ajay Swarup has indicated that the company is likely to earn an EPS of Rs 12-13 for the FY 09-10 based on the fully diluted equity. The company has also signed an agreement for bottling of Jagatjit’s products.

The total traded volume in Jindal Cotex on both the exchanges combined was 5.36 cr shares. The traded volume on day one saw the issued capital change hands 4.76 times. The shares marked for delivery were 2877857 and 2784389 shares on the BSE and NSE respectively making a total of 5662246 shares or 50.33% of the total shares which were offered in the IPO.

This very high delivery certainly indicates people wanting to exit on day one as they are making money after a long time in a small sized issue. What is important that with half the shares sold or delivered they have been accumulated by stronger hands? In the next few days we will know who has bought these shares and what’s in store for the investors of this company.