SJS Enterprises Limited which had tapped the markets with its offer for sale of Rs 800 crs in a price band of Rs 531-542 debuted on the bourses and had a poor showing, losing 5.93%. The discovered price on BSE was Rs 540 at which price 7,617 shares were traded. On NSE, the discovered price was Rs 542 at which price 8,61,758 shares were traded. Approximately 8.68 lac shares were traded at the discovered price on the two exchanges combined.
The issue was subscribed 1.63 times. Earlier the company had completed allocation to anchor investors. The issue had opened on Monday the 1st of November and closed on Wednesday the 3rd of November.
The company allotted 44,28,043 shares to 13 Anchor Investors comprising of 18 entities. The top allocation was made equally to three funds, namely Axis Mutual Fund, Franklin and Goldman Sachs who were each allotted 18.75% of the anchor allocation. The top three anchors were effectively allocated 56.25% of the anchor book.
The QIB portion was subscribed 1.45 times, HNI portion was subscribed 2.36 times and Retail portion was subscribed 1.41 times. There were 2,36,809 applications and on basis of lots the retail portion of the issue was subscribed 1.24 times.
The high of the day on BSE was Rs 541, the low was Rs 505.50 and the close was Rs 509.85. The loss was Rs 32.15 or 5.93%. On NSE, the high of the day was Rs 551, low was Rs 510 and the close was Rs 510.20 a loss of Rs 31.80 or 5.87%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 540.00 | 551.00 | 505.50 | 509.85 | -32.15 | -5.93 | 529.53 | 224748 | 66455 | 29.57 |
| NSE | 542.00 | 551.00 | 510.00 | 510.20 | -31.80 | -5.87 | 531.05 | 5443649 | 2820580 | 51.81 |
| Total | 5668397 | 2887035 | 50.93 |
The traded volume on the two exchanges combined was 56.68 lac shares which was 0.38 times the IPO size of 147.60 lac shares and 0.55 times the non-anchor portion of 103.33 lac shares. Delivery volume was 28.87 lac shares which was 50.93% of the traded volume. It was 19.56% of the issue size and 27.94% of the non-anchor portion. The weighted average of the day’s trade was Rs 529.53 on BSE and Rs 531.05 on NSE.
In terms of institutional or bulk trade, four were reported on NSE. There were two buy trades and two sell trades. The first was Goldman Sachs buying 2,54,786 shares at Rs 527.04 and the second was S I Investments buying 3 lac shares at Rs 542.32. On the sell side, the first was Credit Suisse selling 3,65,607 shares at Rs 530.78 and the second was Rashmi Kant Bhai selling 2,48,981 shares at Rs 542.
There was selling pressure witnessed on day one on the share as the closing price was significantly lower than the weighted average. The delivery volumes have been quite poor even considering the fact that four trades were reported in the bulk trades segment.
The issue has performed way below expectations and the track record of the selling Private Equity Investor continues to haunt. Everstone has had poor performances with S Chand and Indo star Capital in the past while Burger King did well.
It would be interesting to see which way the share performs. As mentioned earlier delivery volumes picking up is the key.
