Jaypee Infratech Limited listed its shares on the BSE and NSE yesterday and was under pressure right from the start of trading. It did not see a single trade in positive territory and the highs were Rs 98.50 and Rs 98.80 on the BSE and NSE respectively. The poor performance is attributed to the fall in the markets over the last few weeks.
The company had tapped the capital markets with a simultaneous issue of fresh equity worth Rs 1650 crs and an offer for sale of 6 cr shares. The price band was Rs 102-117 and the issue carried a discount of 5% for retail investors. The issue was open for subscription between the 29th of April and the 4th of May 2010. The issue received adequate response and was subscribed just about 1.24 times. The issue was priced at Rs 102 and the company allotted a total of 17.39 cr shares as fresh issue and 6 crs shares as offer for sale making a total of 23.39 cr shares.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 93.00 | 98.50 | 90.00 | 91.30 | -10.70 | -10.49 | 93.60 | 16051602 | 3525632 | 21.96 |
| NSE | 98.00 | 98.80 | 90.00 | 91.45 | -10.55 | -10.34 | 94.02 | 36263480 | 14395436 | 39.70 |
| Total | 52315082 | 17921068 | 34.26 |
The share listed at Rs 93 on the BSE and Rs 98 on the NSE respectively. The highs were Rs 98.50 and Rs 98.80 respectively. The lows were at Rs 90 on both the exchanges. The traded volumes were significantly lower than normal at 5.23 cr shares. It may be mentioned that the first one hour of trade had seen volumes of 2.94 cr shares. This effectively means that the volume in 5.and a half hours was a mere 2.29 cr shares significantly lower than the first hour of trade itself. The share closed at Rs 91.30 down 10.7% on the BSE and Rs 91.45 down 10.55% on the NSE.
The low volumes indicate that people were simply not interested in selling at 10% below the IPO price or retail investors selling 5% below their discounted price. They preferred to hold on and would wait for better opportunities. Traders felt that the stock price had already reached low levels and shorting at these levels would be dangerous and not profitable to initiate trades. The weighted average was Rs 93.60 on the BSE and Rs 94.02 on the NSE.
At the end of the day the total traded volume was 5.23 cr shares or a mere 22.4% of the IPO size of 23.39 cr shares. The delivery volume was 1.79 cr shares or 34.26% of the traded volume. The delivery as a percentage of IPO size was 7.66%. The low volumes indicate that there would be a selling pressure at higher levels if the share moves closer to the discounted issue price of retail investors. Trading volumes are likely to pick up if the share price improves. At current levels there would be little interest.
In summary, a completely disappointing start to the trading of yet another IPO.
