Tega Industries Limited which had tapped the capital markets with its offer for sale of 1,36,69,478 shares in a price band of Rs 443-453 received overwhelming support. The issue was subscribed 219.03 times. QIB portion was subscribed 215.45 times, HNI portion was subscribed 666.19 times and the Retail portion was subscribed 29.44 times. There were 34.84 lac applications and on basis of lots, the retail portion was subscribed 24.03 times.
The issue saw a new record level of subscription in the QIB portion and was the highest received in the decade. This beat the subscription received in the HDFC AMC issue which was at 196.26 times. The total subscription amount garnered by this issue was Rs 95,127 crs against the issue size of Rs 619.23 crs. The cost of funding is just under Rs 500 which means the share has to trade near the four-digit level if the leveraged HNI has to make money. This could be a tough task but one never knows.
Earlier the company had completed allocation to anchor investors. The issue had opened on Wednesday the 1st of December and closed on Friday the 3rd of December.
The company allotted 41,00,842 shares to 17 anchor investors comprising of 25 entities. Domestic mutual funds were allotted 25,77,661 shares to 8 entities. This comprised 62.86% of the anchor allocation.
The top allocation was made equal to two anchors, namely SBI Mutual Fund and Ashoka Fund who were allotted 5,73,936 shares or 14% of the anchor allocation. This was followed by an identical 7.54% or 3,09,045 shares to 7 anchor investors. This effectively meant that the top nine anchor investors were allotted 80.78% of the anchor book.
The shares had a discovery price of Rs 753 on BSE and Rs 760 on NSE. At these prices, the traded quantity was 112,666 shares on BSE and 14,36,775 shares on NSE.
The high of the day on BSE was Rs 767.10, the low was Rs 711.50 and the close was Rs 725.50. The gain was Rs 272.50 or 60.15%. On NSE, the high of the day was Rs 767.70, the low was Rs 712.25 and the close was Rs 726.05 a gain of Rs 273.05 or 60.28%.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 753.80 | 767.10 | 711.50 | 725.50 | 272.50 | 60.15 | 741.81 | 1083755 | 397049 | 36.64 |
| NSE | 760.00 | 767.70 | 712.25 | 726.05 | 273.05 | 60.28 | 741.53 | 16646140 | 6100996 | 36.65 |
| Total | 17729895 | 6498045 | 36.65 |
The traded volume on the two exchanges combined was 177.29 lac shares which was 1.30 times the IPO size of 136.69 lac shares and 1.85 times the non-anchor portion of 95.68 lac shares. Delivery volume was 64.98 lac shares which were 36.65 % of the traded volume. It was 47.54 % of the issue size and 67.91 % of the non-anchor portion. The weighted average of the day’s trade was Rs 741.98 on BSE and Rs 741.53 on NSE.
In terms of institutional or bulk trade, none were reported on either BSE or NSE. The traded and delivery volumes were reasonably high. While the share has had a decent start and done well for itself, the cost of the leveraged HNI was too high for comfort and has ensured that he has lost money on day one. In the short, to medium term, the price would fall as the leveraged HNI would exit making losses.
In conclusion, Good listing but a bad outcome for the leveraged HNI’s who subscribed to this issue so heavily.
