Ekes out gains on listing day
Shares of Manpasand Beverages Limited which had tapped the capital markets with its IPO to raise Rs 400 crs in a price band of Rs 290-320, listed yesterday on the bourses. The issue had a reservation of 75% for QIB’s, 15% for HNI’s and 10% for retail. While the QIB and retail portions were oversubscribed, HNI portion was undersubscribed.
The discovered price was Rs 291 on the designated exchange BSE which incidentally began celebrations for its 140th year yesterday. The share made a low of Rs 286 and recovered to close at Rs 326.85. The weighted average of the day’s trade was Rs 321.21 on the BSE and Rs 321.58 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 291.00 | 341.90 | 286.00 | 326.85 | 6.85 | 2.14 | 321.21 | 1578793 | 211732 | 13.41 |
| NSE | 300.00 | 342.60 | 285.70 | 327.75 | 7.75 | 2.42 | 321.48 | 4876093 | 809997 | 16.61 |
| Total | 6454886 | 1021729 | 15.83 |
SEBI allows companies to tap the capital markets with IPO’s which have accounts no more than 180 days old on the day the issue opens. Add the time to listing this becomes roughly 200 days by the time the issue actually trades. On listing there should be a time frame in which companies must declare results so that a correct picture of the company’s performance is available to shareholders.
Take the case of Manpasand where the IPO was with December 14 numbers. The company listed in July 2015 and now results for the year ended March 2015 are technically overdue under listing norms where they should be declared by June 2015. One is sure that the results would be ready but for reason best known to the management, its merchant bankers and lawyers they are not being declared. One would remember the case of Jubilant Foods, the makers of Domino’s Pizza in India who declared quarterly results one day prior to listing.
I am sure there must be some norms which are being interpreted in a manner that suits some individuals better. The regulator whether it be SEBI or the exchanges must lay clear defined norms as to what time frame is mandatory for declaring results post listing. I am sure just because Manpasand went public the mandatory requirement of holding the AGM by 30th September will not change.
All in all Manpasand had a subdued but creditable listing considering the events in China. One hopes that the results for the March and June quarter are declared as early as possible as this company has a great amount of cyclicality and over 60% of its top line comes from the first half of the calendar year which corresponds to the 4th quarter and 1st quarter.
Manpasand survived China scare and this is a good start considering the poor buzz that the company had at the time of its IPO.
