Shares of Hindustan Aeronautics Limited (HAL) debuted on the bourses and had a poor start. The company had tapped the capital markets through an offer for sale of 3,41,07,525 shares in a price band of Rs 1,215-1240 with a discount of Rs 25 to retail investors and eligible employees. There was no anchor allocation being a government company.
The issue was just under subscribed and received bids for about 99% of the total issue. The QIB portion was subscribed 1.73 times, HNI portion subscribed 0.03 times, Retail portion subscribed 0.39 times and employee portion subscribed 0.21 times. The company allotted 3,35,32,320 shares which was 98.31% of the offer for sale.
Life Insurance Corporation of India Limited was allotted 2,34,07,104 shares which was 69.80% of the total allotment. There are 1,94,019 retail investors who own 43,87,692 shares at an average of 22.61 shares. The lot size was 12 shares.
HAL allotted the shares at the lower end of the price band at Rs 1,215. This effectively meant that the allotment price considering the discount was Rs 1,190 for retail and eligible employees.
The company has announced an interim dividend of Rs 8.25 for the current year and has sought special permission from SEBI for not conforming to the rules. The record date for the dividend would was 30th March which means you cannot buy shares to get the same. Further it is effectively for those who were allotted shares in the IPO.
The discovered price was Rs 1,169 on the BSE and Rs 1,152 on the NSE. The high of the day was 1,184 and Rs 1,184.95 respectively. The low was Rs 1,117.60 and Rs 1,121. The close of the day was Rs 1,128.35 on the BSE, a loss of Rs 86.65 or 7.13%. On the NSE the close was Rs 1,132.85, a loss of Rs 82.15 or 6.76%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 1169.00 | 1184.40 | 1117.60 | 1128.35 | -86.65 | -7.13 | 1156.28 | 216641 | 36474 | 16.84 |
| NSE | 1152.00 | 1184.95 | 1121.00 | 1132.85 | -82.15 | -6.76 | 1157.71 | 1692143 | 412571 | 24.38 |
| Total | 1908784 | 449045 | 23.53 |
The combined traded volume was a mere 19.08 lakh shares which was 5.69% of the final IPO allotment size. Delivery volume was 4.49 lakh shares which was 23.53% of the traded volume and 1.34% of the IPO size. The weighted average of the days trade on BSE was Rs 1,156.28 while it was Rs 1,157.71 on the NSE. Considering the fact that the share price fell in the last half hour and closed below the weighted average, indicates that the share could be under selling pressure in the coming days.
The share performance was below par and considering the fact that there has been no FII interest in the same, the price seems a little bit tentative. Secondly LIC already owns 70% of the public float, reducing its ability to purchase any further.
