Shares of Micro System Limited were off to a flying start and gained over 65% but closed at down circuit thereafter. The company had tapped the capital markets with its fresh issue to raise Rs 156 crs in a price band of Rs 270-275. The company had allotted 16,96,050 shares to 3 anchor investors comprising of 4 entities. The largest allotment of 8,48,000 equity shares which is 50% of the anchor allotment was made to 2 entities of Sundaram Mutual Fund.

The issue was open between Wednesday the 10th of January and Friday the 12th of January. The issue had received excellent response and was subscribed 248.51 times overall. The QIB portion was subscribed 101.93 times, HNI portion a record 958 times, Retail 40.19 times and Employee portion as subscribed 16.04 times. The HNI portion was a record for oversubscription.

The discovered price was Rs 478 on the BSE and Rs 465 on the NSE against the issue price of Rs 465. Normal trading began and the share hit a high of Rs 479.75 on the BSE and Rs 480 on the NSE. The good tidings for the share ended at this level and then profit taking saw the share hit lower circuit on both exchanges. The low and the close on BSE was Rs 454.10 on the BSE and Rs 441.75 on the NSE.

The combined traded volume was 12.10 lakhs which was 21.33% of the IPO size of 56.72 lakh shares. Being in trade to trade, the delivery was 100%. If one were to consider the non-anchor portion. The delivery percentage was 30.43%. The weighted average of the day was Rs 465.24 on the BSE and Rs 457.71 on the NSE. The net gain was Rs 179.10 on the BSE or 65.13%. On the NSE the gain was Rs 166.75 or 60.64%.

While the final figure of 60% and 65% looks good, the fact that there were only sellers for the majority part of the day, does not give comfort to investors. The circuit on the down side on day one could lead to more in the coming days.