Sterling and Wilson Solar Limited which had tapped the capital markets with its offer for sale for Rs 3,125 crs debuted on the bourses yesterday and lost about 7% at close. The company had issued shares at the top end of the price band of Rs 775-780. It had earlier completed allocation to anchor investors where it allotted 1,80,28,846 equity shares to 21 anchor investors comprising of 27 entities.

The highest allocation was made to Nomura India Investment Fund Mother Fund who was allotted 28.84 lakh shares or 16% of the anchor book. This was followed by Reliance Capital Trustee Co Ltd who was allotted 25.64 lac shares or 14.22% in three funds. Indian funds were allotted 20.27% of the anchor book while Foreign funds were allotted 79.73% of the anchor book.

The issue was open from Tuesday the 6th of August till Thursday the 8th of August. The issue was subscribed by QIB’s and received decent support from HNI’s and Retail investors. However, the HNI and Retail portion remained undersubscribed. HNI portion was subscribed 0.89 times while Retail portion was subscribed 0.30 times. The issue was overall subscribed 92.25% including anchor allocation and garnered Rs 2883 crs.

The discovered price on BSE was Rs 700 while it was Rs 706 on NSE. The traded volume at the discovered price was 11,380 shares on BSE and 1,25,810 shares on NSE. The high of the day was Rs 755.50 on BSE and 753.45 on NSE while the low was Rs 691 and 690.10. Call it strange or bizarre coincidence, the low yesterday made by debutant Spandana was Rs 690 and Rs 691.10. Unbelievable but true a difference of just 10 paisa. Of course, the issue price was different. The closing price of SW Solar was Rs 725.35 on BSE, a loss of Rs 54.65 or 7.01% while it was Rs 726.20, a loss of Rs 53.80 or 6.90% on NSE.

The traded volume was 49.08 lac shares which was 13.28% of the IPO size or 25.92% of the non-anchor issue. Delivery volume was 21.10 lac shares which was 42.99% of the traded volume and 5.71% of the IPO size of 369.61 lac shares. It was 11.15% of the non-anchor portion. Weighted average of the days trade was Rs 724.65 on BSE and Rs 724.16 on NSE which is very close to the days close as well. This indicates that the share was never under any severe pressure throughout the day. Prices were stable and even though the share closed with losses of 7% it was steady.

There were no institutional trades on either the buy or sell side.

The conclusion of the day was that shares closed with losses of 7% on decent trading and reasonable deliveries. The size of the issue was large and this needs to be borne in mind when looking at the overall trading and delivery percentage.