Car Trade Tech Limited which had tapped the capital markets with its offer for sale of 1,85,32,206 shares in a price band of Rs 1,585-1,618 was subscribed 20.29 times. The issue had opened on Monday the 9th of August and closed on Wednesday the 11th of August. The discovered price on BSE was Rs 1,600 at which price 29,442 shares were traded. On NSE, the discovered price was Rs 1599.80 at which price 22,06,013 shares were traded.

Earlier the company had completed allocation to anchor investors The company allotted 55,59,664 shares at Rs 1,618 to 43 anchor investors. The highest allocation was made to American Funds Insurance Series who was allotted 4,63,527 equity shares or 8.34% of the anchor book. This was followed by an equal allotment to three mutual funds of 3,24,468 equity shares or 5.84% to Axis, Aditya Birla and HDFC. Thus, the top four anchor investors were allotted 25.86% of the anchor book. At the bottom end of the anchor allocation, 8 anchors were allotted 32,361 shares or 0.58% of the anchor book.

The QIB portion was subscribed 35.45 times, HNI portion was subscribed 41 times and Retail portion was subscribed 2.75 times. The retail portion saw 17.29 lac applications. On basis of lots, the retail portion was subscribed 2.40 times. The cost of funding for the leveraged HNI was between Rs121-125.

The high of the day on BSE was Rs 1,610, low was Rs 1,476 and the close was Rs 1,500.10. The loss was Rs 117.90% or 7.29%. On NSE, the high of the day was Rs 1,618, low was Rs 1,475 and the close of the day was Rs 1,501.05, a loss of Rs 116.95 or 7.23%.

The weighted average of the day was Rs 1534.25 on BSE and Rs 1557.52 on NSE. The traded volume was 5.21 lac shares on BSE and 115.73 lac shares on NSE. The traded volume combined of 120.95 lac shares was 65% of the IPO size of 185.32 lac shares. It was 93% of the non-anchor portion of 129.72 lac shares. Delivery volume was 59.21 lac shares which was 48.96% of the traded quantity. It was 31.95% of the IPO size and 45.64% of the non-anchor portion. The fact that there is substantial difference between the close and the weighted average indicates the selling pressure on the issue through the day.

There were three names which appeared in the institutional trade side on NSE. These were all buy trades. The first was of 4 lac shares by Plutus Wealth Management at Rs 1,590.86 per share. The second was 9,60,042 shares by Goldman Sachs at Rs 1,563.43 per share. The third was 3,89,446 shares by Jupiter India Fund at Rs 1,575.55 per share. With 17.5 lac shares of the 59.21 lac shares finding names, it shows there was institutional buying interest. However, the other fact worth noting is that delivery percentage at just 45.64% of the non-anchor portion is low and indicates that the share could come under selling pressure if the price falls and even if it rises, as investors holding would like to exit at breakeven.

The final factor is that leveraged HNI’s are out of pocket at the closing price by Rs 240 and would exit on Monday in any case if they failed to do so on Friday. This was the second IPO in the week which listed and closed at a discount. Clearly shows fatigue and tiredness in the market. On the valuation front one is not supposed to comment as all issues have been oversubscribed and there are enough people waiting to buy.

In conclusion, a poor listing and indicating that all is not well on the primary front.