Metro Brands Limited which had tapped the capital markets with its fresh issue for Rs 295 crs and an offer for sale of 2,14,50,100 shares in a price band of Rs 485-500 completed allocation to anchor investors. The issue had opened on Friday the 10th of December and closed on Tuesday the 14th of December.
The discovered price on BSE was Rs 436 at which price 26,011 shares were traded. The discovered price on NSE was Rs 437 at which price 19,92,117 shares were traded.
The company completed allocation to anchor investors by allotting 82,05,030 shares to 21 anchor investors comprising of 28 entities. Five anchors were each allotted 5,40,000 shares or 6.58% of the allocation. They were ICICI Prudential ESG Fund, Goldman Sachs, HDFC, Kotak and Abu Dhabi Investment Authority. This was followed by five entities being allotted 4,00,020 shares or 4.88% of the anchor book. The top ten anchors were allotted 57.30% of the anchor book. Nine Domestic Funds comprising of 11 entities were allotted 27,40,050 equity shares or 33.39% of the anchor book.
The overall issue was subscribed 3.63 times. QIB portion was subscribed 8.49 times, HNI portion was subscribed 3.02 times and Retail portion was subscribed 1.12 times. There were 3.03 lac applications and on basis of lots, Retail portion was subscribed a mere 0.95 times. Clearly the Retail investor is smarter than people think him to be.
The high of the day on BSE was Rs 507.70, the low was Rs 426.10 and the close was Rs 493.55. The loss was Rs 6.45 or 1.29%. On NSE, the high of the day was Rs 507.90, low was Rs 426 and the close was Rs 493.35 a loss of Rs 6.65 or 1.33%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 436.00 | 507.70 | 426.10 | 493.55 | -6.45 | -1.29 | 476.34 | 775605 | 174666 | 22.52 |
| NSE | 437.00 | 507.90 | 426.00 | 493.35 | -6.65 | -1.33 | 475.61 | 19716936 | 6033972 | 30.60 |
| Total | 20492541 | 6208638 | 30.30 |
The traded volume on the two exchanges combined was 204.92 lac shares which was 0.75 times the IPO size of 273.50 lac shares and 1.07 times the non-anchor portion of 191.45 lac shares. Delivery volume was 62.08 lac shares which was 30.30 % of the traded volume. It was 22.70 % of the issue size and 32.43 % of the non-anchor portion. The weighted average of the day’s trade was Rs 476.34 on BSE and Rs 475.61 on NSE.
In terms of institutional or bulk trade, none were reported on either BSE or NSE. The traded volumes were decent but delivery volumes were very low. Investors believe that the share price will recover in the coming days. Not sure whether this share would go the similar way as Star Health which after holding on day one, fell over the next few days and is currently lower by over 10-11%. No matter who backs the company, investors want some money on the table or will not invest or look to buy the share post listing.
Yet another disaster on listing day and there maybe more price damage as we go further. Wakeup time for merchant bankers and the need to be conscious of pricing the issue well rather than over aggressive.
