Shares of New India Assurance Company Limited debuted on the bourses and the listing result was poor. Shares which were issued at Rs 800 closed for trading at Rs 725.05 on the BSE, a loss of Rs 74.95 or 9.37%. On the NSE the closing price was Rs 727.10, a loss of Rs 72.10 or 9.11%.
The company had tapped the capital markets with its fresh issue of 2.4 cr shares and an offer for sale of 9.6 cr shares was fully subscribed. The price band was Rs 770-800 with a discount of Rs 30 for retail shareholders and eligible employees. The overall issue was subscribed 1.19 times with the bulk of the response coming from QIB’s. LIC OF INDIA was a big subscriber and helped in getting the issue through. Retail and HNI’s were wary of subscribing on the back of a poor listing of GIC RE. While QIB portion was subscribed 2.34 times, HNI portion was undersubscribed at 0.12 times and retail at 0.11 times. The employee quota was also undersubscribed at 0.21 times.
The share began trading at Rs 748.90 on the BSE and Rs 750 on the NSE. The high of the day was Rs 749 and RS 750 respectively. The lows were Rs 717.75 and Rs 717.40. The close of the day was Rs 725.05 on the BSE, a loss of Rs 74.95 or 9.37%. On NSE the close was Rs 727.10, a loss of Rs 72.90 or 9.11%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 748.90 | 749.00 | 717.75 | 725.05 | -74.95 | -9.37 | 730.43 | 430055 | 53327 | 12.40 |
| NSE | 750.00 | 750.00 | 717.40 | 727.10 | -72.90 | -9.11 | 729.83 | 2539383 | 470125 | 18.51 |
| Total | 2969438 | 523452 | 17.63 |
The traded volume was 29.69 lakh shares which was a mere 2.47% of the IPO size. This being a PSU, there was no anchor investors. The delivery volume was 5.23 lakh shares which was 17.63% of the traded volume and a mere 0.44% of the IPO size. The IPO as mentioned earlier was undersubscribed in the non-institutional category and it can be clearly seen that whatever trading has happened is largely speculative in nature. The overall volume n the share was extremely pathetic and one does not remember such poor volumes on listing day in the near past. The weighted average of the day was Rs 730.43 on the BSE and Rs 729.83 on the NSE. The weighted average was higher than the close on both the exchanges indicating that there was selling pressure.
While the allotment price was Rs 800, retail and employees were given a discount of Rs 30 to the issue price. The spate of insurance companies which have collectively raised Rs 45,000 crs have killed the appetite for insurance company shares and also the market.
One hopes that the issue from HDFC Standard Life does not meet a similar fate.
