Chemcon Specialty Chemicals shares debuted for trading on the bourses on the 1st of October and the discovered price on BSE was Rs 730.95 while it was Rs 731 on NSE. The company had issued shares at Rs 340, which meant that the discovered price was higher by Rs 390.95 or 114.98% on BSE. On the NSE the gain was marginally higher at Rs 391 and 115%. The high of the day was Rs 743.80 on BSE and Rs 731.25 on NSE. Thereafter the scrip was in a downward move and lost ground throughout the day to close at the lower circuit of Rs 584.80 on both the exchanges.
Earlier the company which had tapped the capital markets with its fresh issue for 165 crs and an offer for sale of 45 lac shares completed allocation to anchor investors. The company allotted 28,05,880 equity shares to 13 Anchor investors comprising of 16 entities. The highest allocation was made to ICICI Prudential and IDFC emerging Business Fund and Dynamic Equity Fund who were allotted 3,08,836 shares or 11.01% of the anchor allocation.
The issue had opened on Monday the 21st of September and closed on Wednesday the 23rd of September. The price band was Rs 338 to Rs 340. The issue was subscribed 149.33 times with QIB portion subscribed 113.54 times, HNI portion 449.14 times and Retail portion was subscribed 41.21 times. There were 28.05 lac applications which meant that on the basis of forms the issue was subscribed in retail by 37.59 times.
The price discovery saw 73,018 shares being traded on BSE and 15,03,339 shares traded on NSE. The share saw a total trading of 177.24 lac shares on both the exchanges combined. The traded volume was 1.89 times the IPO size and 2.70 times the non-anchor issue size of 65.59 lac shares. Delivery volume was 58.08 lac shares which was 32.77% of traded volume and 62.02% of the IPO size of 93.65 lac shares. Considering non-anchor size, delivery percentage was 88.55% and this could easily have been higher but for the lower circuit on both exchanges. The HNI portion was subscribed a massive 449.14 times which meant the cost of funding was between Rs 215-220. So far so good, with all people having sold making money. If the share slips another Rs 25, the breakeven would have gone and profits would turn into losses. Looking at it in another way the cost of funding corresponds to 64% of the issue price.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 730.95 | 743.80 | 584.80 | 584.80 | 244.80 | 72.00 | 627.90 | 1944906 | 523041/td> | 26.89 |
| NSE | 731.00 | 731.25 | 584.80 | 584.80 | 244.80 | 72.00 | 632.29 | 15779162 | 5285378 | 33.50 |
| Total | 17724068 | 5808419 | 32.77 |
The weighted average of the day’s trade was Rs 627.90 on BSE while it was Rs 632.29 on NSE. Clearly the share was under tremendous pressure as the lower circuit indicates and the price difference of almost Rs 44 on BSE and Rs 49 on NSE from the weighted average.
There were no names of buyers on either of the two exchanges on day one. This suggests that no big buyers were there on day one.
The week ahead would determine the future of the share in the short and medium term. A well-received IPO could turn into a not so good one on account of funding issue. Unfortunate!
