Star Heath and Allied Insurance Company Limited which had tapped the capital markets with its fresh issue for Rs 2,000 crs and an offer for sale of 5,83,24,225 shares in a price band of Rs 870-900 saw tepid response and struggled in getting subscribed. At the end of the three-day subscription period, it could garner subscription to the extent of just 79% of the issue post anchor. It would now proceed to allot the shares based on the response received and reduce the shortfall in subscription by reducing the size of the offer for sale.

The shares had a discovery price of Rs 848.80 on BSE and Rs 845 on NSE. At these prices, the traded quantity was 14,747 shares on BSE and 8,02,907 shares on NSE.

Earlier the company had completed allocation to anchor investors. The company allotted 3,57,45,901 equity shares to 49 entities comprising of 62 entities at the top end of the price band of Rs 900.

The highest allocation was made to Baillie Gifford Pacific Fund who was allotted 27,76,208 shares or 7.77% of the anchor book. This was followed by Monetary Authority of Singapore and Government of Singapore who were allotted 6.89% and 0.87% of the anchor book, making a total of 27,76,224 shares or 7.76% of the anchor book. This was followed by WF Asian Smaller Companies Fund who was allotted 27,30,992 shares or 7.64% of the anchor book. This was followed by Valiant who through three funds was allotted 24,82,928 share or 6.95% of the anchor book.

The top four anchor investors were allotted 1,07,66,352 shares or 30.12% of the anchor book. The surprising thing was that there was just one domestic fund, Edelweiss Mutual Fund who invested 1,65,376 shares or 0.46% of the anchor book. Very clearly the non-participation by domestic mutual funds whatever be their reason is a disturbing thing as they are the entity which is witnessing the maximum fund flow currently.

The final issue size was 6,76,91,120 shares. This was significantly lower than the original size of 8,06,54,848 shares. The issue had opened on Tuesday the 30th of November and closed on Thursday the 2nd of December.

The high of the day on BSE was Rs 940, the low was Rs 827.50 and the close was Rs 906.85. The gain was Rs 6.85 or 0.76%. On NSE, the high of the day was Rs 940, low was Rs 828 and the close was Rs 906.85 a gain of Rs 6.85 or 0.76%.

The traded volume on the two exchanges combined was 140.63 lac shares which was 0.21 times the IPO size of 676.91 lac shares and 0.44 times the non-anchor portion of 319.45 lac shares. Delivery volume was 48.17 lac shares which was 34.26 % of the traded volume. It was 7.12 % of the issue size and 15.08 % of the non-anchor portion. The weighted average of the day’s trade was Rs 898 on BSE and Rs 897.29 on NSE.

In terms of institutional or bulk trade, none were reported on either BSE or NSE. The traded and delivery volumes were abysmally low and showed that there were vested interest at play in ensuring that the share managed to remain afloat at the end of the first day’s trading. With such poor volumes, the share could drift or move in either direction depending on demand or supply. However, for anything to happen volumes have to pick up with deliveries too taking place.

In conclusion a very badly priced issue where a dozen merchant bankers with promoters went grossly wrong in overpricing the issue. Time to go back to the drawing board.

Metro Brands Limited which is tapping 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 has opened on Friday the 10th of December and would close on Tuesday the 14th of December.

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.

Full details of the anchor allocation are given below: –

Rategain Travel Technologies Limited which had tapped the capital markets with its fresh issue for Rs 375 crs and an offer for sale of 2,26,05,530 equity shares was oversubscribed 17.40 times. The issue had opened on Tuesday the 7th of December and closed on Thursday the 9th of December and had a price band of Rs 405-425.

The QIB portion was subscribed 8.42 times, HNI portion was subscribed 42.04 times, Retail portion was subscribed 8.06 times and Employee portion was subscribed 1.37 times. There were 6.63 lac applications and on basis of lots the retail portion of the issue was subscribed 7.42 times.

Earlier the company allotted 1,40,90,136 equity shares at Rs 425 to 20 anchor investors comprising of 34 entities. The highest allocation was made to Government of Singapore who was allotted 16,44,650 shares or 11.67% of the anchor book. Along with its associate, Monetary Authority of Singapore who was allotted 2.45% of the anchor book or 3,55,355 shares. The total allotment was 20,00,005 shares or 14.19% of the anchor. This was followed by an allotment of an equal 10.02% or 14,11,795 equity shares to 4 entities which comprised of two FII’s and two domestic mutual funds. The FII’s were Ashoka and Nomura while the domestic funds were ICICI Prudential and Nippon. The top five anchor investors were allotted 76,47,185 equity shares or 54.27% of the anchor book.

Full details of the subscription are given below: –