Shares of Karda Construction Limited listed on the bourses and the same was a disaster. The company had offered 43 lakh shares in a fresh issue in a price band of Rs 175-180. The issue was oversubscribed 2.53 times with QIB portion subscribed 1.53 times, HNI portion subscribed 3.43 times and Retail 2.01 times.
The discovered price on the BSE was Rs 136 which was lower by Rs 44 or 24.44% to the issue price. The share would trade in the trade to trade category for the first ten trading days. There is no discovery price on the NSE and it is taken as the same as the one on BSE.
The high of the day was the 5% circuit that the share is allowed to move and was Rs 142.80 on the BSE and NSE. The low of the day was the discovered price on BSE and Rs 129.20 on the NSE which incidentally was at the lower circuit. The traded volumes were 12.88 lakh shares which was 30% of the IPO size. The delivery volume was 100% as the share was in trade to trade mode of settlement. The weighted average of the day’s trade was Rs 140.78 on the BSE and Rs 139.52 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 136.00 | 142.80 | 136.00 | 142.80 | -37.20 | -20.67 | 140.78 | 254041 | 254041 | 100.00 |
| NSE | 136.00 | 142.80 | 129.20 | 142.80 | -37.20 | -20.67 | 139.52 | 1034837 | 1034837 | 100.00 |
| Total | 1288878 | 1288878 | 100.00 |
The closing at Rs 142.80 was lower by Rs 37.20 or 20.67%. There were four entities which bought the share on NSE as per bulk trade data. They bought a total of 4,64,510 shares on the exchange. Considering the size of the issue and the fact that it was trade to trade, this seems surprising. Very clearly there is a common hand behind the same and would need further observation as the days progress.
While the performance is certainly a disaster, the last word on Karda has not been written. It is best for investors to stay away from this share and look at quality companies in the realty space.
