Globus Spirits Limited was listed on the BSE and NSE today. The company had a listing ceremony on the BSE. The company had issued 75 lac shares in the price band of Rs 90 to 100. The issue was open during the period 31st of August and 2nd of September 2009. The issue was priced at Rs 100. The stock which listed well moved up to a high of Rs 111.30 and 111.70 on the BSE and NSE respectively. The stock was in positive territory but kept on slipping and half way through the day’s trading had not only given up the day’s gains but began trading in the negative.

Information from the exchanges shows that while atleast two institutional investors sold on day one, one investor has bought as well. The volume on the BSE and the NSE was 104 lacs and 131 lacs respectively. The combined volume of 235 lacs in the day’s trade was poor. The delivery percentage was 16.86 % and almost 40 lac shares were sold for delivery on day one. This delivery is 52.92 % of the shares offered in the IPO.

In a television interview after the listing the Managing Director of the company Mr Ajay Swarup has indicated that the company is likely to earn an EPS of Rs 12-13 for the FY 09-10 based on the fully diluted equity. The company has also signed an agreement for bottling of Jagatjit’s products. The prospects of decent earnings did not help the company survive the onslaught and the share tumbled to close at Rs 90.75 on the BSE and Rs 90 on the NSE respectively. The share lost close to 10% at close and was marginally higher than the low of the day.

In conclusion, though the share had given listing gains in the early part of the day, clearly the same were unsustainable and the share cracked under pressure. History books will record the event as one more IPO which cracked on listing day and closed well below issue price.

Globus Spirits Limited was listed on the BSE and NSE today. The company had a listing ceremony on the BSE. The company had issued 75 lac shares in the price band of Rs 90 to 100. The issue was open during the period 31st of August and 2nd of September 2009. The issue was priced at Rs 100. The stock listed at Rs 110 on both the exchanges and has been under some pressure thereafter. The stock after showing initial strength has given up a large part of its gain but is still trading in positive territory and as of 11.45 am the stock was up about 2% on both the exchanges. The volume on the BSE and the NSE was 45 lacs and 60 lacs respectively. The combined volume of almost 106 lacs in the first 110 minutes of trade is average. It would be interesting to see where the stock closes at the end of the day.

In a television interview after the listing the Managing Director of the company Mr Ajay Swarup has indicated that the company is likely to earn an EPS of Rs 12-13 for the FY 09-10 based on the fully diluted equity. The company has also signed an agreement for bottling of Jagatjit’s products.