Indigo Paints Limited which listed on the bourses yesterday saw the share make spectacular gains. The company had issued shares at Rs 1,490 and after seeing a price discovery of Rs 2,607.50, they closed at Rs 3,118.65, a gain of Rs 1,628.65 or 109.31%.
The issue was open from Wednesday the 20th of January and closed on Friday the 22nd of January. The issue consisted of a fresh issue of Rs 300 crs and an offer for sale of 58.40 lac shares in a price band of Rs 1,490-1,500. The issue received excellent response and was subscribed 117.02 times with QIB portion subscribed 189.57 times, HNI portion subscribed 263.05 times and Retail portion subscribed 15.93 times. There were over 30.21 lac applications received which is a record by itself.
Earlier the company had allotted 23,35,020 equity shares to 25 anchor investors comprising of 35 entities. The highest allocation was made to Smallcap World Fund who was allotted 2,67,940 equity shares or 11.5% of the anchor portion. The list of allotments includes domestic funds and FPI’s.
The share at price discovery saw a volume of 59,502 on the BSE and 11,94,278 on NSE. The high of the day was Rs 3,129 on BSE while the low was Rs 2,428.20. The close was Rs 3,118.65, a gain of Rs 1,628.65 or 109.31%. On NSE, the open was the same at Rs 2,607.50 while the high was Rs 3,129. The low was Rs 2,436.05 while the close was Rs 3,117.15, a gain of Rs 1,627.15 or 109.20%. The traded volume was 136.87 lac shares which was 1.74 times the IPO size of 78.53 lac shares and 2.48 times the non-anchor portion of 55.18 lac shares. The delivery volume was 59.22 lac shares which was 43.27% of the traded volume and 107.32% of the non-anchor portion. On first count this would make people believe that punters have gone short on the counter. The reality may not be entirely correct as the company had during the course of its journey to the capital markets issued 4.55 lac shares to employees. This may explain the shortfall.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 2607.50 | 3129.00 | 2428.20 | 3118.65 | 1628.65 | 109.31 | 2714.01 | 1035547 | 465803 | 44.98 |
| NSE | 2607.50 | 3129.00 | 2436.05 | 3117.15 | 1627.15 | 109.20 | 2684.34 | 12652036 | 5456304 | 43.13 |
| Total | 13687583 | 5922107 | 43.27 |
The weighted average of the days trade was Rs 2,714.01 on BSE and Rs 2,684.34 on NSE. There is a substantial difference between the weighted average and closing price, indicating that bulls had the upper hand.
There were five institutional trades reported on the NSE, four of which were on the buy side while one was on the sell side. The buyers were India Acorn ICAV who bought 5,38,135 shares at Rs 2,719.79, Nomura India who bought 5,30,868 shares at Rs 2,601.54, Abu Dhabi Investment Authority who bought 6,41,953 shares at Rs 2,730.29 and Al Mehwar Commercial Investments LLC who bought 4,13,846 shares at Rs 2,774.47. On the sell side, Edelweiss Finance sold 3,50,431 shares at Rs 2,613. This effectively meant that net total of 17.74 lac shares was acquired on day one.
The performance of the share on listing day is more than creditable. Whether such gains can be sustained going forward or not is highly debatable. As for today, it appears that Mr Cool M S Dhoni the brand ambassador for Indigo Paints has won the match in the slog overs.
