Metro Brands Limited which had tapped the capital markets with its fresh issue for Rs 295 crs and an offer for sale of 2,14,50,100 shares in a price band of Rs 485-500 completed allocation to anchor investors. The issue had opened on Friday the 10th of December and closed on Tuesday the 14th of December.

The discovered price on BSE was Rs 436 at which price 26,011 shares were traded. The discovered price on NSE was Rs 437 at which price 19,92,117 shares were traded.

The company completed allocation to anchor investors by allotting 82,05,030 shares to 21 anchor investors comprising of 28 entities. Five anchors were each allotted 5,40,000 shares or 6.58% of the allocation. They were ICICI Prudential ESG Fund, Goldman Sachs, HDFC, Kotak and Abu Dhabi Investment Authority. This was followed by five entities being allotted 4,00,020 shares or 4.88% of the anchor book. The top ten anchors were allotted 57.30% of the anchor book. Nine Domestic Funds comprising of 11 entities were allotted 27,40,050 equity shares or 33.39% of the anchor book.

The overall issue was subscribed 3.63 times. QIB portion was subscribed 8.49 times, HNI portion was subscribed 3.02 times and Retail portion was subscribed 1.12 times. There were 3.03 lac applications and on basis of lots, Retail portion was subscribed a mere 0.95 times. Clearly the Retail investor is smarter than people think him to be.

The high of the day on BSE was Rs 507.70, the low was Rs 426.10 and the close was Rs 493.55. The loss was Rs 6.45 or 1.29%. On NSE, the high of the day was Rs 507.90, low was Rs 426 and the close was Rs 493.35 a loss of Rs 6.65 or 1.33%.

The traded volume on the two exchanges combined was 204.92 lac shares which was 0.75 times the IPO size of 273.50 lac shares and 1.07 times the non-anchor portion of 191.45 lac shares. Delivery volume was 62.08 lac shares which was 30.30 % of the traded volume. It was 22.70 % of the issue size and 32.43 % of the non-anchor portion. The weighted average of the day’s trade was Rs 476.34 on BSE and Rs 475.61 on NSE.

In terms of institutional or bulk trade, none were reported on either BSE or NSE. The traded volumes were decent but delivery volumes were very low. Investors believe that the share price will recover in the coming days. Not sure whether this share would go the similar way as Star Health which after holding on day one, fell over the next few days and is currently lower by over 10-11%. No matter who backs the company, investors want some money on the table or will not invest or look to buy the share post listing.

Yet another disaster on listing day and there maybe more price damage as we go further. Wakeup time for merchant bankers and the need to be conscious of pricing the issue well rather than over aggressive.

C.E. Info Systems Limited who had tapped the capital markets with its offer for sale of 1,00, 63,945 shares in a price band of Rs 1,000-1,033, was subscribed 154.71 times. The issue has opened on Thursday the 9th of December and closed on Monday the 13th of December. Earlier the company had completed allocation to anchor investors by allotting 30,19,183 equity shares at Rs 1,033 which is the top end of the price band to 22 anchor investors comprising of 34 entities.

The discovered price was Rs 1,581 on BSE at which price 62,288 shares were traded. It was Rs 1,565 on NSE at which price 11,25,659 shares were traded.

The highest allocation was made to Fidelity who were allotted 4,64,688 shares or 15.40% of the anchor book. This was followed by Nomura who was allotted 5.77% or 1,74,258 shares. This was followed by an equal allotment of 1,54,896 shares or 5.13% to four anchor investors. The top six anchors were allotted 12,58,530 shares or 41.69% of the anchor book. In terms of domestic mutual fund participation, 10,06,395 shares or 33.33% of the anchor book was allotted to 9 anchors comprising of 17 schemes.

The issue saw the QIB portion being subscribed 196.36 times, HNI portion being subscribed 424.69 times and the Retail portion being subscribed 15.20 times. There were 31.54 lac applications and on the basis of lots the retail portion was subscribed 12.54 times. The cost of funding for the leveraged HNI was between Rs 715 to Rs 725 times. This means the issue must list at closer to Rs 1,800 g=for the leveraged HNI to make any money whatsoever.

The high of the day on BSE was Rs 1,586.85, the low was Rs 1,282.20 and the close was Rs 1394.55. The gain was Rs 361.55 or 35%. On NSE, the high of the day was Rs 1,590, low was Rs 1,282.60 and the close was Rs 1,393.65 a gain of Rs 360.55 or 34.91%.

The traded volume on the two exchanges combined was 145.38 lac shares which was 1.44 times the IPO size of 100.63 lac shares and 2.06 times the non-anchor portion of 70.44 lac shares. Delivery volume was 46.98 lac shares which was 32.32 % of the traded volume. It was 46.46 % of the issue size and 66.69 % of the non-anchor portion. The weighted average of the day’s trade was Rs 1,409.64 on BSE and Rs 1,412.20 on NSE.

In terms of institutional or bulk trade, two were reported on NSE. Fidelity bought 3,18,100 shares at an average price of Rs 1,404.47. The other trade saw Goldman Sachs buy 3,76,708 shares at Rs 1,392,99. The traded and delivery volumes were quite high.

The listing was good considering the share gained 35% at the end of day. The sad part was the oversubscription of the issue during subscription was so high that the cost of the leveraged HNI was in excess of Rs 670 which implied that the HNI needed the share to list and trade at Rs 1,700 which did not happen. While the share has done well, HNI’s have lost a bomb. Gong forward it would be interesting to see whether HNI’s can recover their cost in the next couple of days failing which they would have to book losses and exit.

Shriram Properties Limited who had tapped the capital markets with its fresh issue for Rs 250 crs and an offer for sale of Rs 350 crs, was subscribed 4.81 times. The issue has opened on Wednesday the 8th of December and closes on Friday the 10th of December. The price band is Rs 113-118. The discovered price on BSE was Rs 94 at which price 1,03,519 shares were traded. It was Rs 90 on NSE at which price 48,15,373 shares were traded.

Earlier the company had completed allocation to anchor investors. The company allotted 2,27,66,949 shares at Rs 118 which is the top end of the band to 10 anchor investors comprising of 30 entities. The highest allocation was made to Nomura who was allotted, 42,37,375 equity shares or 18.61% of the anchor book. This was followed by SBI Life Insurance who was allotted 37,29,000 shares or 16.38% of the anchor book. Nippon Mutual fund was allotted 33,89,875 equity shares or 14.89% of the anchor book. Sundaram Mutual Fund was allotted 11.14% of the anchor book.

Domestic mutual funds were allotted 84,74,625 equity shares or 37.22% of the anchor book. The top 4 anchors were allotted 61.02% of the anchor book.

The QIB portion was subscribed 1.93 times, HNI portion was subscribed 5.04 times, Retail portion was subscribed 13.27 times and Employee portion was subscribed 1.31 times. There were 4.56 lac applications and on basis of lots, Retail portion was subscribed 11.28 times.

The high of the day on BSE was Rs 106.35, the low was Rs 91.75 and the close was Rs 99.40. The loss was Rs 18.60 or 15.76%. On NSE, the high of the day was Rs 106.40, low was Rs 90 and the close was Rs 99.60 a loss of Rs 18.40 or 15.59%.

The traded volume on the two exchanges combined was 323.65 lac shares which was 0.64 times the IPO size of 508.73 lac shares and 1.15 times the non-anchor portion of 281.06 lac shares. Delivery volume was 112.42 lac shares which was 34.73 % of the traded volume. It was 22.10 % of the issue size and 40 % of the non-anchor portion. The weighted average of the day’s trade was Rs 100.35 on BSE and Rs 98.90 on NSE.

In terms of institutional or bulk trade, one was reported on NSE. Nomura bought 20 lac shares at an average price of Rs 95.53. The traded and delivery volumes were lower than expected. The share was under pressure as can be seen from the lower prices at which it traded. The share could be under further pressure going forward.

In conclusion, a poor listing and would reflect on the group as well.