Shares of RailTel Corporation Limited listed on the bourses and had a great outing gaining over 29%. The company had tapped the capital markets with its offer for sale of 871.53 lac shares in a price band of Rs 93-94. The issue had opened on Tuesday the 16th of February and closed on Thursday the 18th of February.

Earlier, the company had allotted 2,59,57,446 shares to 13 anchor investors comprising of 23 entities. The highest allocation of 37,23,100 shares or 14.34% was made to HDFC Life Insurance. This was followed by 4 entities which were allotted an identical 31,91,295 equity shares or 12.29% of the anchor allocation. They are Nippon Life, Goldman Sachs, HDFC Mutual Fund, and ICICI Prudential Mutual Fund. This effectively means that the top five anchors have been allotted 63.5% of the anchor portion.

The discovered price on BSE was Rs 104.60 while it was Rs 109 on NSE. At the discovered price, 5.08 lac shares were traded on BSE while 77.82 lac shares were traded on NSE. The day’s high was Rs 127.85 on BSE while the low was Rs 104.60. The close was Rs 121.40, a gain of Rs 27.40 or 29.15%. On NSE, the high was Rs 127.85 while the low was Rs 101. The close was Rs 121.35, a gain of Rs 27.35 or 29.10%. The traded volume was 1440.70 lac shares which was 1.65 times the IPO size of 871.53 lac shares. It was 2.35 times the non-anchor portion of 611.95 lac shares.

Delivery volume was 412.10 lac shares which were 28.60% of the traded volume and 47.28% of the IPO size. When compared with the non-anchor portion it was 67.34%. The weighted average of the day was Rs 119.35 on BSE and Rs 117.47 on NSE. Very clearly there was no selling pressure on the share in the last session of the day’s trade as the closing price is higher than the weighted average.

In terms of institutional trade, there were three buyers on NSE. The first was Nippon Mutual fund who bought 20 lac shares at Rs 116.13. Yet another fund from Nippon bought 50 lac shares at Rs 109. The third buyer was Goldman Sachs who bought 37.09 lac shares at Rs 113.57. In all, a total of 107.09 lac shares, or 26% of the delivery was taken by institutions. This is a healthy sign and considering that the markets on Friday were down sharply, this is an excellent performance by the company.

Heranba Industries Limited which had tapped the capital markets with its fresh issue for Rs 60 crs and an offer for sale of 90.15 lac shares, in a price band of Rs 626-627 was oversubscribed 83.29 times. The issue was open from Tuesday the 23rd of February to Thursday the 25th of February. Earlier the company had completed allocation to anchor investors by allotting 29,90,520 equity shares to 15 anchor investors comprising of 18 entities. The highest allocation of 5,58,290 equity shares was made to Government Pension Fund Global. This was 18.67% of the anchor allocation. This was followed by an allotment of 3,58,869 equity shares or 12.00% of the allocation to HDFC Mutual Fund. The top two anchor allotments constituted 9.17 lac shares or 30.67% of the anchor portion.

The issue was subscribed 67.45 times by QIB’s 271.15 times by HNI’s and 11.84 times by Retail investors. Overall, the issue was subscribed 83.29 times. There were 14.55 lac applications and on the basis of lots, the retail portion was subscribed 9.59 times.

The cost of funding for the leveraged HNI would be in the region of Rs 240-248. While the subscription levels are excellent. The challenge would be to see whether the share can sustain the cost of funding when it lists. The breakeven point for the leveraged HNI would be Rs 870-880.