Car Trade Tech Limited which had tapped the capital markets with its offer for sale of 1,85,32,206 shares in a price band of Rs 1,585-1,618 was subscribed 20.29 times. The issue had opened on Monday the 9th of August and closed on Wednesday the 11th of August. The discovered price on BSE was Rs 1,600 at which price 29,442 shares were traded. On NSE, the discovered price was Rs 1599.80 at which price 22,06,013 shares were traded.

Earlier the company had completed allocation to anchor investors The company allotted 55,59,664 shares at Rs 1,618 to 43 anchor investors. The highest allocation was made to American Funds Insurance Series who was allotted 4,63,527 equity shares or 8.34% of the anchor book. This was followed by an equal allotment to three mutual funds of 3,24,468 equity shares or 5.84% to Axis, Aditya Birla and HDFC. Thus, the top four anchor investors were allotted 25.86% of the anchor book. At the bottom end of the anchor allocation, 8 anchors were allotted 32,361 shares or 0.58% of the anchor book.

The QIB portion was subscribed 35.45 times, HNI portion was subscribed 41 times and Retail portion was subscribed 2.75 times. The retail portion saw 17.29 lac applications. On basis of lots, the retail portion was subscribed 2.40 times. The cost of funding for the leveraged HNI was between Rs121-125.

The high of the day on BSE was Rs 1,610, low was Rs 1,476 and the close was Rs 1,500.10. The loss was Rs 117.90% or 7.29%. On NSE, the high of the day was Rs 1,618, low was Rs 1,475 and the close of the day was Rs 1,501.05, a loss of Rs 116.95 or 7.23%.

The weighted average of the day was Rs 1534.25 on BSE and Rs 1557.52 on NSE. The traded volume was 5.21 lac shares on BSE and 115.73 lac shares on NSE. The traded volume combined of 120.95 lac shares was 65% of the IPO size of 185.32 lac shares. It was 93% of the non-anchor portion of 129.72 lac shares. Delivery volume was 59.21 lac shares which was 48.96% of the traded quantity. It was 31.95% of the IPO size and 45.64% of the non-anchor portion. The fact that there is substantial difference between the close and the weighted average indicates the selling pressure on the issue through the day.

There were three names which appeared in the institutional trade side on NSE. These were all buy trades. The first was of 4 lac shares by Plutus Wealth Management at Rs 1,590.86 per share. The second was 9,60,042 shares by Goldman Sachs at Rs 1,563.43 per share. The third was 3,89,446 shares by Jupiter India Fund at Rs 1,575.55 per share. With 17.5 lac shares of the 59.21 lac shares finding names, it shows there was institutional buying interest. However, the other fact worth noting is that delivery percentage at just 45.64% of the non-anchor portion is low and indicates that the share could come under selling pressure if the price falls and even if it rises, as investors holding would like to exit at breakeven.

The final factor is that leveraged HNI’s are out of pocket at the closing price by Rs 240 and would exit on Monday in any case if they failed to do so on Friday. This was the second IPO in the week 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 and indicating that all is not well on the primary front.

Exxaro Tiles Limited which had tapped the capital markets with its fresh issue for 1,11,86,000 shares and an offer for sale of 22,38,000 in a price band of Rs 118-120, debuted at the bourses and closed at the upper circuit of Rs 132.30. The share gained Rs 12.30 or 10.25%.

Earlier the company had completed allocation to anchor investors. The issue which had opened on Wednesday the 4th of August and closed on Friday the 6th of August, saw the company allotting 19,73,325 shares at Rs 120 per share. The company allotted the shares to two anchors comprising of three entities. The highest allocation was given to Quant Mutual Fund, who was allotted 15,56,500 shares or 68.88% of the anchor allotment equally in two schemes. The second mutual fund who was allotted shares was AG Dynamic Funds who was allotted 4,16,825 shares or 21.12% of the anchor book.

The QIB portion was subscribed 17.67 times, HNI portion was subscribed 5.36 times while Retail portion was subscribed 40.10 times. Employee portion was subscribed 2.53 times. There were 21.10 lac applications and on basis of applications, the retail issue was subscribed 34.58 times. Overall, the issue was subscribed 22.68 times.

The size of the issue was Rs 165 crs, hence the share would trade in the trade-to-trade category for ten trading sessions. The discovered price on BSE and NSE was an identical Rs 126. At this price the traded volume on BSE was 36,283 shares while it was 6,88,434 shares on NSE. The share closed at the 5% upper circuit of Rs 132.30 on both exchanges.

The high of the day on BSE and NSE was Rs 132.30 and the low was the discovered price of Rs 126 on both exchanges. Looking at the prices, it seems that there were vested interests at play in supporting the prices and allowing the share to have a smooth day on a day when bigger names fell by the wayside.

The weighted average of the day was Rs 129.02 on BSE and Rs 128.93 on NSE. The traded volume was 7.40 lac shares on BSE and 46.33 lac shares on NSE. The traded volume combined of 53.74 lac shares was 40.03% of the IPO size of 134.24 lac shares. It was 46.93% of the non-anchor portion of 114.50 lac shares. Delivery volume was 100% of traded volume as the share is in trade-to-trade category.

There were four trades which appeared on NSE. While two were on the buy side, two others were on the sell side. The names on the buy side included, Mansi Shares who bought 2.25 lac shares at Rs 132.30 and Vaibhav Doshi who bought 3.04 lac shares at Rs 128.74. On the sell side, were Plutus Wealth Management who sold 2.57 lac shares at Rs 127.67 and Morgan Stanley Asia who sold 2.54 lac shares at Rs 127.07.

While the performance of the share could be said to be good considering the market, one does get a feeling that things were ‘manged’. The share has another nine days to go under restricted trading and it would be interesting to see how it fares during these crucial nine days.

Windlas Biotech Limited which had tapped the capital markets with its fresh issue of Rs 165 crs and an offer for sale of 51,42,067 equity shares in a price band of Rs 448-460, listed on the bourses and had a poor outing. The share closed at Rs 406.70, a loss of Rs 53.30 or 11.59% on day one. The discovered price on BSE was Rs 439 at which price 14,714 shares were traded. On NSE, the discovered price was Rs 437 at which price 2,26,761 shares were traded.

Earlier the company had completed its allocation to anchor investors by allotting 26,18,706 equity shares at Rs 460 to 12 anchor investors comprising of 22 entities.

The highest allocation was made to ICICI Prudential Pharma Healthcare Fund of 5,43,450 equity shares or 20.75% of the anchor allocation. This was followed by an equal allotment of 2,17,410 shares or 8.30% to 8 anchors. This implies that the top nine anchors were allotted 87.15% of the anchor portion.

The issue had opened on Wednesday the 4th of August and closed on Friday the 6th of August.

The QIB portion was subscribed 24.10 times, HNI portion was subscribed 15.91 times while Retail portion was subscribed 24.54 times. There were 21.01 lac applications and on basis of applications, the retail issue was subscribed 20.63 times. The overall issue was subscribed 22.56 times.

The high of the day on BSE was Rs 452.10, low was Rs 405 and the close was Rs 406.70. The loss was Rs 53.30 or 11.59%. On NSE, the high of the day was Rs 452, low was Rs 405 and the close of the day was Rs 407.15, a loss of Rs 52.85 or 11.49%.

The weighted average of the day was Rs 424.58 on BSE and Rs 424.87 on NSE. The traded volume was 3.27 lac shares on BSE and 41.03 lac shares on NSE. The traded volume combined of 44.30 lac shares was 55% of the IPO size of 81.22 lac shares. It was 78% of the non-anchor portion of 56.85 lac shares. Delivery volume was 18.98 lac shares which was 42.85% of the traded quantity. It was 23.37% of the IPO size and 33.39% of the non-anchor portion.

There was only one name which appeared in the institutional trade side of the two exchanges combined. This was a sell trade of 1.22 lac shares by ICICI Ltd -Trading A/c at Rs 417.62 per share.

The poor performance of the share where it failed to even cross the issue price at any point of time, indicates its extreme poor performance. It has closed substantially lower than the open and well below the weighted average indicating that the share was under severe pressure during the day’s trade. Further, the way issue prices and valuations have been pushed through the roof by selling shareholders (mainly Private Equity Investors), Promoters and ever willing and obliging merchant bankers, must realise that this is the beginning of the end. This time the end has come very fast because greed has risen too fast to digest. All the issues to list today have had a by and large poor performance, and these three categories are to blame.

While the issue has fared poorly, the significant poor trading and delivery as a percentage of issue size indicate that there could be more pressure in the coming days.