Aptus Value Housing Finance India Limited which had tapped the capital markets with its fresh issue of Rs 500 crs and an offer for sale of 6,45,90,695 shares listed on the bourses. The price band of the issue was Rs 346-353. The issue had opened on Tuesday the 10th of August and closed on Thursday the 12th of August. The discovered price on BSE was Rs 329.95 at which price 1,31,135 shares were traded. On NSE, the discovered price was Rs 333 at which price 66,85,684 shares were traded.

Earlier the company had completed allocation to anchor investors by allotting 2,36,26,500 equity shares to 26 Anchor investors comprising of 36 entities at the top end of the band of Rs 353. The highest allocation was made to WF Reconnaissance Fund Limited who was allotted 29,42,772 shares or 12.46% of the anchor allotment. This was followed by Smallcap World Fund who was allotted 24,45,912 shares or 10.35% of the anchor allotment. This was followed by the Genesis group who was allotted 9.15% of the shares through 3 entities. The top 3 anchors were allotted 31.96% of the anchor book. Overall, FPI’s were allotted 91.72% of the anchor book while Domestic investors were allotted 8.28% of the book.

The QIB portion was subscribed 32.41 times, HNI portion was subscribed 33.91 times and Retail portion was subscribed 1.35 times. There were 7.81 lac applications and on basis of lots, Retail portion was subscribed 1.19 times. The issue was subscribed 17.20 times on overall basis.

The high of the day on BSE was Rs 354.60 while the low was Rs 329.95 which was the discovered price. The close was Rs 346.50, a loss of Rs 6.50 or 1.84%. On NSE, the high of the day was Rs 354.80, low was Rs 33 and the close of the day was Rs 346.90, a loss of Rs 6.10 or 1.73%.

The weighted average of the day was Rs 345.45 on BSE and Rs 343.85 on NSE. The combined traded volume was 342.02 lac shares which was 42 % of the IPO size of 817.55 lac shares. It was 62% of the non-anchor portion of 551.28 lac shares. Delivery volume was 224.95 lac shares which was 65.77 % of the traded quantity. It was 27.52 % of the IPO size and 40.81 % of the non-anchor portion. The share opened at the low of the day on both exchanges and moved up. It did cross the issue price briefly but closed lower.

There were no names on the institutional trade side on BSE or NSE.

This was the fifth IPO in succession which listed and closed at a discount. Clearly shows fatigue and tiredness in the market. On the valuation front, one is not supposed to comment as all issues have been oversubscribed and there are enough people waiting to buy.

In conclusion, a poor listing even though the loss was minimal but strengthening the fact that all is not well on the primary front. Its time private equity investors and promoters realised that something must be left on the table for risk takers.

Chemplast Sanmar Limited which had tapped the capital markets with its fresh issue of Rs 1,300 crs and an offer for sale of Rs 2,550 crs listed on the bourses. The price band of the issue was Rs 530-541. The issue had opened on Tuesday the 10th of August and closed on Thursday the 12th of August. The discovered price on BSE was Rs 525 at which price 59,381 shares were traded. On NSE, the discovered price was Rs 550 at which price 38,21,377 shares were traded.

Earlier the company had completed allocation to anchor investors by allotting 3,20,24,029 equity shares at the top end of the price band of Rs 341 to 43 anchor investors comprising of 78 entities. The top 4 anchor investors were domestic mutual funds namely: -Axis Mutual Fund, SBI Mutual Fund, Mirae Asset and HDFC Life Insurance who were each allotted 32,34,735 equity shares or 10.10% of the anchor book. The overall book was more or less split between FPI’s and Domestic Investors with the former allotted 48.34% of the anchor book and Domestic Investors getting 51.66%. The top four anchor investors comprising of 21 entities were allotted 40.40% of the anchor book.

The QIB portion was subscribed 2.75 times, HNI portion was subscribed 1.05 times and Retail portion was subscribed 2.34 times. There were 5.12 lac applications and on basis of lots, Retail portion was subscribed 1.94 times. The issue overall was subscribed 2.21 times.

The high of the day on BSE was Rs 550 while the low was Rs 510.30. The close was Rs 534,90, a loss of Rs 6.10 or 1.13%. On NSE, the high of the day was Rs 550, low was Rs 510 and the close of the day was Rs 535.60, a loss of Rs 5.40 or 1.00%.

The weighted average of the day was Rs 538.88 on BSE and Rs 539.59 on NSE. The combined traded volume was 162.59 lac shares which was 23 % of the IPO size of 711.64 lac shares. It was 42% of the non-anchor portion of 391.40 lac shares. Delivery volume was 113.84 lac shares which was 69.86 % of the traded quantity. It was 16 % of the IPO size and 29.09 % of the non-anchor portion. The share opened at the mid-level price of the day on BSE and high of the day on NSE and then moved up. The disturbing fact was the poor delivery volume when compared to the issue size.

There were two names on the institutional trade side on NSE. Copthall Mauritius sold 8,92,613 shares at Rs 534.97 while CLSA Global Markets sold 11,94,856 shares at Rs 548.95. The overall support for the issue was lacklustre or lukewarm, considering the same was subscribed a mere 2.21 times.

Incidentally this company had an interesting twist to it as it had delisted from the bourses in 2012 and has now come back to list in 2021.

This was the fourth IPO in succession which listed and closed at a discount. Clearly shows fatigue and tiredness in the market. On the valuation front one is not supposed to comment as all issues have been oversubscribed and there are enough people waiting to buy.

In conclusion, a poor listing even though the loss was minimal but strengthening the fact that all is not well on the primary front.