Shares of Cochin Shipyard Limited listed on the bourses on Friday and the discovered price was marginally higher than the issue price at Rs 435 on the BSE and Rs 440.15 on the NSE. The company had issued shares at Rs 432 and there was a discount of Rs 21 for employees and retail shareholders. The shares then rose to hit the upper circuit of 20% at Rs 522 and Rs 528.15 respectively at around noon and remained there till the rest of the day. For the records it would be that the shares gained 20.83% and 22.26% respectively.
The share issue of Cochin Shipyard created history of sorts garnering subscription of 1.11 lac crs. The issue was subscribed 75.83 times overall. The QIB portion was subscribed 63.51 times, HNI portion 287.11 times, Retail 8.23 times and Employee 0.52 times. The number of applications received was a new record of 20.75 lac applications bettering the record of HUDCO. On basis of number of applications the retail portion was subscribed 5.36 times. The amount garnered was lower than that of Coal India but one must remember that the size of Coal India was 10 times the size of Cochin Shipyard Limited at 15,500 crs while cochin was a mere 1,468 crs.
Considering the size this issue certainly received larger interest. As in keeping with the current government norms there was no anchor allocation.
The HNI at current prices has not been able to recover his cost of funding the issue and would probably have to wait a little longer before he is able to do so.
Coming to the trading data the total volume on the two exchanges was 308.62 lakh shares which was 91% of the IPO size of 339.84 lakh shares. The delivery volume was 155.12 lakh shares which was 50.26% of the traded volume and 45.65% of the issue size. With there being no anchor portion and even assuming theoretically that all retail subscribers have sold on day one, it is apparent that some HNI’s have booked losses and also sold. Today’s delivery volume would indicate the position further. The weighted average of the day’s trade is Rs 501.26 on the BSE and Rs 508.25 on the NSE indicating that the bulk of the trade happened at the higher prices. It was only the pre-open or the price discovery which saw trade of roughly 25 lakh shares on the two exchanges which were at the low of the day.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 435.00 | 522.00 | 435.00 | 522.00 | 90.00 | 20.83 | 501.26 | 3245290 | 1196387 | 36.87 |
| NSE | 440.15 | 528.15 | 435.00 | 528.15 | 96.15 | 22.26 | 508.25 | 27617037 | 14315806 | 51.84 |
| Total | 30862327 | 15512193 | 50.26 |
The listing on the previous day of SIS was completely the opposite where the share opened at the high of the day and slowly slid as the day progressed to close around the low of the day with losses of 7% plus. If one were to compare the two issues listing day performance they were exactly the opposite and it happened on consecutive days.
Retail investors have made decent money even if they have sold at the average price because this would further include the discount of Rs 21 which would amount to another 4%. A good issue with a decent end of day performance but very clearly the opening price was below expectations and the same could be blamed on market conditions. Once again the government has got it right and investors have made money in the IPO of yet another PSU.
