Kalyan Jewellers Limited which had tapped the capital markets with its fresh issue of Rs 800 crs and an offer for sale of 375 crs in a price band of Rs 86-87 listed on Friday and had a bad start at the bourses. The share debuted at Rs 73.90 and recovered marginally but closed the day at Rs 75.30, a loss of Rs 11.70 or 13.45%.
The discovered price was Rs 73.90 on BSE and Rs 73.95 on NSE. Thereafter on BSE, the high was Rs 81.00, the low was Rs 73.00 and the close was Rs 75.30. On NSE, the high was Rs 81.00, the low was Rs 72.90 and the close was Rs 75.20, a los of Rs 11.80 or 13.56%.
The traded volume was 550.01 lac shares which was 41% of the IPO size of 1350.57 lac shares. It was 58% of the non-anchor portion of 946.09 lac shares. Delivery volume was 194.80 lac shares which was 35.42% of the traded volume. It was 14.42% of the issue size and 20.59% of the non-anchor portion. Weighted average of the day’s trade was Rs 77.31 on BSE and Rs 77.13 on NSE. The share as under pressure at the end of day.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 73.90 | 81.00 | 73.00 | 75.30 | -11.70 | -13.45 | 77.31 | 3579304 | 1043471 | 29.15 |
| NSE | 73.95 | 81.00 | 72.90 | 75.20 | -11.80 | -13.56 | 77.13 | 51421860 | 18436639 | 35.85 |
| Total | 55001164 | 19480110 | 35.42 |
Earlier the company had completed its allocation to anchor investors. The company allotted 4,04,48,275 equity shares at the top end of the band to 12 anchor investors comprising of 15 entities. The issue had opened on Tuesday the 16th of March and closed on Thursday the 18th of March.
The highest allocation was made to Government of Singapore who was allotted 1,17,27,992 equity shares or 29% of the anchor allocation. Another entity, Monetary Authority of Singapore was allotted 20,65,032 shares or 5.11% of the allocation making the total for Singapore Government, 34.11% of the anchor book. The next highest allocation was Sundaram Mutual Fund who was allotted 91,95,292 equity shares or 22.76% of the shares in three schemes. The third highest allocation was to Calypso Global Investment Fund who was allotted 57,47,036 equity shares or 14.21% of the shares.
The issue was subscribed 2.79 times by QIB’s, 1.93 times by HNI’s, 2.85 times by Retail and 3.78 times by Employees. There were 5.94 lac applications and on basis of lots, the retail portion was subscribed 2.17 times. Considering that this issue at Rs 1,175 crs was almost double in size compared with the other issues in the market currently, the number of applications received in this issue were substantially lower.
There were no institutional trades reported either on the buy side or the sell side on this counter. Considering the size of the issue of over 1350 lac shares, one would have expected some institutional activity to happen. With poor volume, one could expect the share to be under some pressure in the coming days until a fair amount of shares change hands.
All in all, it was a poor listing and it probably matches with the sector not being in favour and the issue being overpriced.
