United Bank of India listed this morning. The PSU bank had come out with an IPO in the price band of Rs 60-66. Retail investors were offered a discount of 5% in the issue which means that they were offered shares effectively at Rs 63.
The share listed on the BSE at Rs 77 while on the NSE the open was Rs 74.90. The high on both the exchanges was Rs 77 and the lows were Rs 69.80 on the BSE and Rs 70.15 on the NSE respectively.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 77.00 | 77.00 | 68.10 | 68.80 | 2.80 | 4.24 | 71.38 | 28299084 | 5279146 | 18.65 |
| NSE | 74.90 | 77.00 | 68.00 | 68.65 | 2.65 | 4.02 | 71.32 | 55114410 | 16854593 | 30.58 |
| Total | 83413494 | 22133739 | 26.53 |
The share saw excellent volume all through the day and the final combined volume was 8.34 cr shares or 1.67 times the IPO size of 5 cr shares. Delivery volume was 2.21 cr shares which was 26.53% of the traded volume, a high figure and more importantly 44.2% of the IPO size. This gives an indication that a very large number of people who were allotted shares in the IPO have sold. The weighted average of the traded volume was 71.38 and 71.32 respectively while the closing price was 68.80 and 68.65 respectively. This lower market price compared to higher weighted average indicates that the share was under tremendous pressure towards the end.
The weighted average for the day indicates a gain of about 8% for investors and with the 3 Rs discount to retail investors indicates a gain of 13.30% to them which could be considered as below normal considering the poor allotment that has happened because of the oversubscription.
One thing is sure the stock is under pressure and there could be further pressure as the stock moves down closer to the issue price. Good issue, decent price but not sustaining on day one.
Dear Arun,
Because of all your earnest efforts,now the private sector is leaving enough on the table for Investors to earn their cornbill.If I recollect previously all Govt of India Companies(Public Sector)used to price their issue in such a way that The Common man(Investor)used to reap rich rewards.Now this trend has reversed.Spate of issues such as National Hydro,NTPC,NMDC and now United Bank have not left enough for Investors.Arun you will now have to put up a tough fight and put it up to Govt of India that their pricing of issues does not leave enough on the table.Hope Dear Arun after fighting Private Sector successfuly,you will now shift the battle arena to New Delhi and ensure that Public Sector Offerings are priced reasonably.