Krsnaa Diagnostics Limited which had tapped the capital markets with its fresh issue for Rs 400 crs and an offer for sale of 85,25,250 equity shares in a price band of Rs 933-954 listed on the bourses and gained 3.45%. The discovered price on BSE was Rs 1,025 at which price 91,817 shares were traded. On NSE, the discovered price was Rs 1,005.55 at which price 12,80,328 shares were traded.

The company had earlier completed allocation to anchor investors. The company allotted 56,28,937 shares to 36 anchor investors comprising of 44 entities. The highest allotment was made to 5 anchor investors who were each allotted 4,08,810 shares or 7.26% of the anchor book. The top five anchors were therefore allotted 36.3% of the anchor portion.

The QIB portion was subscribed 49.83 times, HNI portion was subscribed 116.30 times while Retail portion was subscribed 42.04 times. Employee portion was subscribed 0.98 times. There were 21.01 lac applications and on basis of applications, the retail issue was subscribed 20.63 times. The overall issue was subscribed 64.40 times. The cost of funding was between Rs 200-205. Leveraged investors have lost money in this IPO as the stock at no time crossed a level of even Rs 150 gain. Clearly, markets overestimated the worth of this share and subscribed it more than the gains it could sustain. At the closing price, leveraged HNI’s have lost money in the issue.

The high of the day on BSE was Rs 1,099.50, low was Rs 961.45 and the close was Rs 990.75. The gain was Rs 36.75 or 3.85%. On NSE, the high of the day was Rs 1,099.70, low was Rs 960 and the close of the day was Rs 987, a gain of Rs 33 or 3.46%.

The weighted average of the day was Rs 1026.76 on BSE and Rs 1026.89 on NSE. The traded volume was 4.30 lac shares on BSE and 83.08 lac shares on NSE. The traded volume combined of 87.38 lac shares was 69% of the IPO size of 127.41 lac shares. It was 1.23 times the non-anchor portion of 71.12 lac shares. Delivery volume was 42.73 lac shares which was 48.90% of the traded quantity. It was 33.54% of the IPO size and 60.08% of the non-anchor portion.
There was only one name which appeared in the institutional trade side of the two exchanges combined. This was a buy trade of 2.30 lac shares by Birla Sunlife Insurance at Rs 1,023.34 per share.
The poor performance of the share where it has closed substantially lower than the open and well below the weighted average indicates that the share was under severe pressure during the days trade. Further, the way issue prices and valuations have been pushed through the roof by selling shareholders (mainly Private Equity Investors), Promoters and ever willing and obliging merchant bankers, must realise that this is the beginning of the end. This time the end has come very fast because greed has risen too fast to digest. All the issues to list today have had a by and large poor performance, and these three categories are to blame.
While the issue did manage to hold on to slim gains, the share is not yet out of the woods and would face harrowing times in the days ahead. To add to the woes of the counter is the fact that delivery volumes are fairly poor compared to average of listing day.