Shares of Mahindra Logistics Limited listed on the bourses and ‘managed’ to stay above par on listing day. The company had tapped the capital markets with its fresh issue for 1,93,32,346 equity shares completed allocation to anchor investors.
The issue is in a price band of Rs 425-429. The company had earlier allotted 57,62,203 shares to 15 anchor investors comprising of 19 entities. The highest allocation of 5,36,112 shares or 9.30% has been made to four investors which include 2 FPI’s and 2 domestic funds.
The issue was subscribed overall 7.90 times with QIB portion subscribed 15.60 times. The HNI portion was subscribed 2.02 times while retail was subscribed 6.10 times. In terms of number of applications, the company received 10.04 lakh applications and the retail portion was subscribed 5.08 times in terms of lots.
The discovered price was Rs 432 on the BSE and Rs 429 on the NSE. The high of the day was Rs 433.95 on the BSE and Rs 433.85 on the NSE. The low as Rs 416.55 and Rs 416.10 respectively. The closing price was Rs 429.15 on the BSE, a gain of 15 paisa or 0.03%, while it was Rs 429.50, a gain of 50 paisa or 0.12% on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 432.00 | 433.95 | 416.55 | 429.15 | 0.15 | 0.03 | 427.46 | 1499246 | 546219 | 36.43 |
| NSE | 429.00 | 433.85 | 416.10 | 429.50 | 0.50 | 0.12 | 426.81 | 10214458 | 4067537 | 39.82 |
| Total | 11713704 | 4313756 | 39.39 |
The traded volume was 117.13 lakh shares on the two exchanges combined. This was 60.59% of the IPO size of 193.32 lakh shares. Adjusting the same for non-anchor the traded volume was 86.32% of the IPO size. Delivery volume was 46.13 lakh shares which was 39.395 of the traded volume and 23.87% of the IPO size.
The weighted average of the days trade was Rs 427.46 on the BSE and Rs 426.81 on the NSE. With no funding there was no undue pressure on the share but the share did not return any profits for investors.
The last issue to list from the Mahindra stable was Mahindra Holidays way back in July 2009. Those shares were issued at Rs 300 and rose a little under 6% on listing day. Since the issue till date the company issued bonus shares in the current year in July 2017 in the ratio of one share for 2 shares held. The current price of Rs 342.50 means that the original share has appreciated from Rs 300 to Rs 513.75 in a little over eight years. I believe the returns are substandard and well below the returns of even the SENSEX which has almost doubled in the same period.
Poor listing and just about made the grade of not finishing below the issue price on listing day.
