One 97 Communications Limited, the company which own the brand Paytm saw its IPO subscribed 1.95 times. The company had tapped the capital markets with its fresh issue to raise Rs 8,300 crs and an offer for sale of Rs 10,000. The total issue size was Rs 18,300 crs making it the largest issue ever to hit the Indian Capital Markets. The price band was Rs 2,080-2,150.

The discovered price on BSE was Rs 1,955 at which price 91,232 shares were traded. On NSE, the discovered price was 1,950 at which price 19,94,493 shares were traded. Approximately 20.85 lac shares were traded at the discovered price on the two exchanges combined.

The company had earlier completed allocation to anchor investors and allotted 3,83,02,326 shares at Rs 2,150 to 122 entities. The anchor allocation raised Rs 8,235 crs. The highest allocation was made to Canada Pension Plan Investment Board who was allotted 43,61,964 shares or 11.4% of the anchor allocation. This was followed by Blackrock Global Funds who were allotted 40,38,030 shares or 10.5% of the anchor allocation. Four domestic mutual funds were allotted 48,85,386 equity shares or 12.8% of the anchor book. These were Aditya Birla, HDFC, Mirae Asset and BNP Paribas. The top two anchor investors were allotted 21.9% of the anchor book.

The QIB portion was subscribed 2.88 times, HNI portion was subscribed 0.25 times and Retail portion was subscribed 1.72 times. The overall issue was subscribed 1.95 times. There were 14.40 lac applications.

The high of the day on BSE was Rs 1,961.05, the low was Rs 1,564 and the close was Rs 1,564.15. The loss was Rs 585.85 or 27.25%. On NSE, the high of the day was Rs 1,955, low was Rs 1,560 and the close was Rs 1,560.80 a loss of Rs 589.20 or 27.40%.

The traded volume on the two exchanges combined was 249.61 lac shares which was 0.29 times the IPO size of 851.16 lac shares and 0.53 times the non-anchor portion of 468.13 lac shares. Delivery volume was 107.15 lac shares which was 42.93% of the traded volume. It was 12.59% of the issue size and 22.89% of the non-anchor portion. The weighted average of the day’s trade was Rs 1,714.06 on BSE and Rs 1,706.08 on NSE.

In terms of institutional or bulk trade, none were reported on either BSE or NSE.

There was selling pressure witnessed on day one on the share as the closing price was significantly lower than the weighted average. The share was at the lower circuit on both exchanges for the last half hour or so of the day. The delivery volumes have been quite poor at just about 23% of the non-anchor portion.

FPI’s were net sellers to the tune of Rs 4,000 crs on Thursday and considering that the delivery volume on Paytm was about 107 lacs or Rs 1830 crs, there would have been some purchases from FPI’s on this counter. Taking this into consideration, it means that FPI’s were even more aggressive sellers on Thursday than the figure suggests.

In conclusion, the listing was below expectations and this would be a setback not only for the new age technology companies but also for the primary market in general.

Sapphire Foods Limited which had tapped the capital markets with its offer for sale of 1,75,69,941 equity shares in a price band of Rs 1,120-1,180 listed on the bourses. The discovered price on BSE was Rs 1,311 at which price 61,260 shares were traded. On NSE, the discovered price was 1,350 at which price 13,33,851 shares were traded. Approximately 14 lac shares were traded at the discovered price on the two exchanges combined.

The issue had opened on Tuesday the 9th of November and closed on Thursday the 11th of November. The QIB portion was subscribed 7.50 times, HNI portion was subscribed 3.46 times and Retail portion was subscribed 7.76 times. There were 9.87 lac applications and on basis of lots the retail portion was subscribed 6.75 times. The overall issue was subscribed 6.45 times. The issue has received muted response and at a time when massive oversubscription is the norm, all buckets were subscribed in single digits.

Competitor and the other franchisee of Yum Foods, who has turned net positive and declared profits for the quarter ended September 2021, saw its share price touch a new high of Rs 168.40 and close at Rs 160.55. the issue which listed on 16th of August had issued shares at Rs 90.

The company allotted 79,06,473 equity shares to 30 anchor investors comprising of 53 entities at the top end of the price band of Rs 1,180. The highest allocation was made to Fidelity Funds who were allotted 12,71,220 shares or 16.07% of the anchor book. This was followed by Government of Singapore who was allotted 8,56,884 shares or 10.84% of the anchor book. Another associate, Monetary authority of Singapore was allotted 1,77,444 equity shares or 2.24% of the anchor book. This made a total of 10,34,328 shares or 13.08% of the anchor book. This meant that the top two anchors comprising of seven entities were allotted 23,05,548 equity shares or 29.15% of the anchor book.

Domestic mutual funds were allotted 5,00,424 shares or 6.33% of the anchor book. This was to two mutual funds with Sundaram being allotted 4.51% of the anchor book and HDFC being allotted 1.82% of the anchor book. Very clearly it appears that domestic mutual funds who are flush with funds have by and large chosen to give this issue the miss. Was it the valuations which kept them away? Not sure, but the India consumption story is intact and issue after issue is getting received unless valuation stops funds. The high of the day on BSE was Rs 1,383.60, the low was Rs 1,160 and the close was Rs 1,216.05. The gain was Rs 36.05 or 3.06%. On NSE, the high of the day was Rs 1,380.05, low was Rs 1,160 and the close was Rs 1,211.55 a gain of Rs 31.55 or 2.67%.

The traded volume on the two exchanges combined was 91.27 lac shares which was 0.52 times the IPO size of 175.69 lac shares and 0.94 times the non-anchor portion of 96.63 lac shares. Delivery volume was 39.31 lac shares which was 43.07% of the traded volume. It was 22.38% of the issue size and 40.68% of the non-anchor portion. The weighted average of the day’s trade was Rs 1,274.43 on BSE and Rs 1,273 on NSE.

In terms of institutional or bulk trade, none were reported on either BSE or NSE.

There was selling pressure witnessed on day one on the share as the closing price was significantly lower than the weighted average. The delivery volumes have been quite poor at just about 40% of the non-anchor portion. There could be a spurt in volume if the price cracks as the comfort zone is just about Rs 30 or about 2.6% of the issue price.

The issue has performed way below expectations and very clearly the PE (private equity) player along with the merchant bankers have to be blamed for becoming so greedy in fixing the price band at 2.3 times what they invested in the company a mere 3 months back.

In conclusion, investors have turned much smarter than what merchant bankers and Private Equity Investors would expect. In this issue the fact that in under three months, the asking price has increased 2.3 times has not gone down well with institutional investors and the same has reflected even in the public subscription. Hope people who matter understand.