Zomato Limited which had tapped the capital markets with its fresh issue of Rs 9,000 crs and an offer for sale of Rs 375 crs, in a price band of Rs 72-76, was subscribed 40.38 times. The issue had opened on Wednesday the 14th of July and closed on Friday the 16th of July.

The companies share listed on the bourses on Friday and had a great day. Shares debuted at Rs 115 on BSE, at which price 42,00,118 shares were traded. On NSE, the listing price was Rs 116 at which price 19,41,45,263 shares were traded.

Earlier the company had allotted 55,21,73,505 equity shares at Rs 76 to 100 anchor investors comprising of 186 entities. This makes this the largest allocation in terms of number of entities in recallable history.

The QIB portion was subscribed 54.71 times, HNI portion was subscribed 34.80 times, Retail portion was subscribed 7.87 times and Employee portion remained undersubscribed at 0.62 times. Retail portion saw 32.29 lac applications and on the basis of lots, the issue was subscribed 5.13 times. This means that the average application was for 1.53 lots.

The unconfirmed reports about the anchor portion being subscribed or receiving bids of 35-37 times the anchor size was a mere publicity stunt and was widely circulated by a leading newspaper chain which has been nicknamed by the market as Zomato Times. The actual subscription by anchor investors was by 186 entities and they applied for 1.04 times the IPO size. This fake news is certainly harmful to the market and unwarranted cause for concern.

The HNI book saw fund raising of Rs 48,686 crs and the overall issue garnered Rs 2.13 lac crs including the anchor portion.

Coming to the listing proper, the high on BSE was Rs 138, the low was Rs 114 and the closing price was Rs 125.85. The gain was Rs 49.85, or 65.59%. On NSE, the high was Rs 138.90, low was Rs 115 and the close was Rs 126, a gain of Rs 50 or 65.79%. The traded volume on the two exchanges combined was 74 cr shares which was 60% of the IPO size of 123.35 cr shares. It was 1.09 times of the non-anchor portion of 68.13 cr shares. Delivery volume was 44.30 cr shares which was 59.86% of the traded volume. It was 35.92% of the IPO size and 65.02% of the non-anchor portion. Considering that HNI portion is 15% and retail a mere 10% in this issue, the two combined still total just 25%. It means QIB’s have also sold on day one.

The weighted average of the day’s trade was Rs 127.42 on BSE and Rs 124.12 on NSE. There was selling pressure on the stock in the last hour of trading, and one got a sense that great efforts are being made to close the price at a level where the market cap of the stock closes at a magical figure of Rs 1 lac crs. In spite of all the effort and last-minute price support, they failed. The closing price of Rs 125.85 resulted in a market cap of Rs 98,731.59 crs. This also is beyond expectation and I am sure has beaten the expectations of almost all people. For the record it may be stated that the Free float market cap is Rs 8,885.54 crs. This implies that with an anchor allocation of Rs 4,200 crs, the number of shares with AIF’s that are without lock-in and can be sold is about Rs 7,200 crs at current market rates.

There were no institutional trades reported either on the buy or sell side in Zomato Limited.

While the performance has been spectacular, the sustainability is questionable and debatable.

Tatva Chintan Pharma Chem Limited which had tapped the capital markets with its fresh offer for Rs 225 crs and an offer for sale of Rs 275 crs received overwhelming support and was subscribed 182.04 times.

The price band was Rs 1,073-1,083. The issue had opened on Friday the 16th of July and closed on Tuesday the 20th of July.

Earlier the company had completed allocation to anchor investors by allotting 13,85,040 shares amongst 15 anchor investors equally. These anchor investors consisted of 22 entities. There were 7 domestic funds in the total allocation. The allocation is 6.67% or 92,339 shares rounded off to make 100% of the anchor.

The QIB portion was subscribed 186.96 times, HNI portion was subscribed 516.99 times and Retail portion was subscribed 35.68 times. The issue garnered 32.44 lac applications and this is a new record by itself. This incidentally beats the number of applications that an issue which was almost 15 times bigger in size, Zomato, received a slightly higher number of applications. On the basis of number of applications, the issue was subscribed 26.10 times.

The total amount garnered by this Rs 500 cr issue has raised is a staggering Rs 63,860 crs. The number can at best be described as mind-boggling. It can also be viewed as IPO frenzy and retail investors willing to join in an IPO to be just part of the lottery process. In either case, it should make investors and issuers of capital cautious as we, go forward.

Full details of the subscription are given below: –

G R Infraprojects Limited which had tapped the capital markets with its offer for sale of 1,15,08,704 equity shares, listed on the bourses and had a very successful listing. The company whose price band was Rs 828-837 and had allotted shares at the top end, saw its shares close at Rs 1,746.80 on BSE, a gain of Rs 908.80 or 108.45%. On NSE, the closing price was Rs 1,747.10, a gain of Rs 909.10 or 108.48%.

The discovered price was Rs 1,700.00 on BSE and Rs 1,715.85 on NSE. The traded value at the discovered price was 86,655 shares at BSE and 21,16,088 shares on NSE. The high of the day on BSE was Rs 1,838.80, the low was Rs 1,550.00 while the close was Rs 1,746.80. On NSE, the high was Rs 1,715.85, low was Rs 1,550.00 while the close was Rs 1,747.10.

Earlier the company had allotted 33,85,110 shares at Rs 837 to 22 anchor investors comprising of 47 entities. The highest allocation was made to Smallcap World Fund who was allotted 6,21,282 shares forming 18.35% of the anchor allocation. This was followed by ICICI who was allotted 2,21,051 shares or 6.51% of the anchor allocation. This was followed by an equal allocation of 2,03,099 shares or 6% to 4 investors where one was an FPI and three were domestic entities. These were Abu Dhabi Investment Authority, Nippon India, SBI Mutual Fund and HDFC Mutual Fund.

The top six anchor investors were allotted a total of 16,54,729 equity shares or 48.86% of the anchor book.

The QIB portion was subscribed 168.58 times, HNI portion was subscribed 238.04 times and Retail portion was subscribed 12.57 times. Employee portion was subscribed 1.37 times. There were 23.80 lac applications and on basis of lots the retail portion was subscribed 10.25 times. Overall, the issue was subscribed 102.58 times.

The issue garnered subscription of over Rs 70,100 crs. The HNI portion received bids for Rs 33,763 crs. The issue had opened on Wednesday the 7th of July and closed on Friday the 9th of July.

The total traded quantity on the two exchanges was 147.91 lac shares which was 1.29 times the IPO size of 115.08 lac shares. It was 1.82 times the non-anchor portion of 81.23 lac shares. The delivery volume was 68.13 lac shares which was 46.06% of the traded quantity. It was 59.20% of the IPO size and 83.87% of the non-anchor portion. Weighted average of the day’s trade was Rs 1,705.33 on BSE and Rs 1,710.33 on NSE. The difference between the weighted average and the closing price shows that the share was under no sort of pressure in the last hour of trade.

There was just one institutional trade reported where Nomura bought 5 lac shares at Rs 1,714.60 per share.

The share has performed excellently and lucky investors have made more than double returns. Going forward it would be important for the great showing of day one to continue. For this the performance of the company when it reports results for the quarter ended June 2021 would be very important. Looking at the focus on infrastructure, it should not be a problem for the company to report a decent set of results.