Shares of Rossari Biotech Limited which had tapped the capital markets with its simultaneous fresh issue of Rs 50 crs and an offer for sale of 1.05 shares had a dream debut on listing. The company which had sold its shares at Rs 425 saw its shares touch Rs 804 on BSE and close at Rs 742.35, a gain of Rs 317.35 or 74.67%.

Earlier the company had completed its allocation to anchor investors by allotting 35.02 lac shares to 15 anchor investors comprising of 29 entities. The highest allocation of 3,29,420 shares was made to three individual investors which constituted 9.4% of the anchor allocation and was made to Ashoka India, Nalanda Fund and Nippon India. Besides the above, three mutual funds HDFC, ICICI and SBI were also allotted the similar 9.4% in various schemes. The price band was Rs 423-425. The issue had opened on Monday the 13th of July and closed on Wednesday the 15th of July. The issue was subscribed 79.37 times. The QIB portion was subscribed 85.26 times, HNI portion 239.83 times and Retail portion was subscribed 7.23 times. The cost of funding for the leveraged investor worked out to Rs 127-137.

Shares opened at Rs 670 on BSE and Rs 669.25 on NSE. The high of the day was Rs 804 on BSE and Rs 803.10 on NSE. The low was Rs 663.55 and Rs 664 respectively. The closing price was Rs 742.35, a gain of Rs 317.35 or 74.67% on BSE. It was Rs 316.65 or 74.51% on NSE. The traded volume on the two exchanges combined was 338.68 lacs which was 3.32 times the IPO size of 116.76 lac shares and 4.75 timed the non-anchor size. Delivery volume was 75.74 lac shares which was 19.52% of the traded volume but 64.87% of the IPOsize and an unprecedented 92.68% of the non-anchor portion. The last time we had such a high delivery percentage was in the case of a manipulated stock of Fineotex Chemicals which was listed in March 2011. That time the delivery percentage as a basis of the issue size was more than 100%.

The weighted average of the day’s trade was Rs 723.53 on BSE and Rs 722.81 on NSE. In terms of institutional activity, Plutus Wealth Management Limited LLP bought a net of Rs 4,77637 shares at Rs 669.25, which was the pre-discovery price at NSE. Similarly, Goldman Sachs bought 4,81,443 shares at Rs 692.17. With 92.68% or 75.74 lac shares changing hands, the investors in the company now are all around Rs 700 and this would become a new norm. Investors would make or lose money if price rises or falls from these levels. Making money looks difficult currently and the share is likely to see pressure going forward.

In conclusion share on listing day has fared far better than what was expected. Bring the first virtual issue, virtual listing and issue during covid-19, a new benchmark has been set.