NHPC Listing

The much awaited listing of NHPC will happen on Tuesday the 1st of September 2009 at the Convention Centre Mumbai Stock Exchange. The issue is eagerly awaited because it generated a high level of interest especially after the issue of Adani Power which has listed on 20th of August 2009, but is currently struggling at about 3-5% higher than the issue price.

NHPC shares were issued at Rs 36 and in the grey market the premium had touched levels of Rs 12 or 33% higher than the issue price. Over the last few days the premium has dropped significantly and is currently about Rs 4-5 and very few trades are actually happening. There are two important repercussions to the issue performance of NHPC post listing namely: – the success of NHPC will determine the success of the issue of Oil India which opens on 7th September 2009 and secondly HNI’s cost of application was around Rs 7.50 per share. If they do not make money there could be some selling pressure on NHPC and secondly bring about a dampener to the subsequent issues. 

Weekly Performance of Newly Listed Shares week ended 28th aug

 

Name Date of listing Issue Price closing price closing price gain loss change over
28th Aug 21st Aug over week Issue price
Raj Oil Mills Ltd 12th August 120 89.95 89.80 0.17 -25.04
Excel Infoways Limited 3rd August 85 89.15 91.55 -2.62 4.88
Adani Power Ltd 20th August 100 104.15 103.20 0.92 4.15

NHPC Allotment

NHPC has finalised the basis of allotment. Retail investors who have applied for the maximum of 2625 shares have been allotted 713 shares. Retail investors applying for 700 shares or more have been allotted on a firm basis while below 700 shares there is a lottery allocation. There was a spill over from the employee quota which was not fully subscribed and the same was added to the three categories namely HNI, QIB and retail respectively in the ratio of 10, 60 and 30 respectively. The total quantity added as a result of employee under subscription across all three segments was approximately 1.78 cr shares.

The HNI category with the employee under subscription added was oversubscribed 54.75 times. Taking the highest retail allotment of 713 shares, the similar allotment in the HNI category was for an applicant who applied for 39025 shares. The oversubscription in this category was 54.75 times. The cost of application for an investor who took a loan in the HNI category at 10% with a margin of 5% for a period of 13 days is Rs 6.67 per share. This interest cost has reduced as the allocation increased on some cancellations or withdrawals and also because of addition of shares to the category on account of employee under subscription. 

The issue is to be listed on Monday or Tuesday and would be finalised in a day or two. 

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