Shares of Embassy Office Parks Reit which had tapped the capital markets with what was India’s first REIT. Listed on the bourses. The company had issued the same in a price band of Rs 299-300 and allotted at Rs 300. REIT is a real estate investment trust and in its earlier avatars we had two Invits from the infrastructure space.

Embassy Office Parks REIT had also introduced a new concept of strategic investor which have a lock-in of six months. This category is over and above the anchor investor who have a lock-in of one month or 30 days.

The issue size was Rs 4,750 crs and the price band was Rs 299-300. The allocation made to strategic investors was for 2,92,08,800 units at Rs 300 per unit.

Anchor investors were allotted 5,81,05,600 units at Rs 300 per unit. The anchor book consisted of 59 entities. 55% of the issue size was allocated to strategic investors and anchor investors. Amongst the anchor investors were five trusts of the promoter of Avenue Super Marts, the company which runs D-Mart who was allotted 9% of the anchor book.

The institutional and non-institutional book was subscribed 2.15 times and 3.10 times respectively, making the overall book 2.58 times. There was a total of 8,012 forms received.

The units debuted at Rs 300 on the BSE and Rs 308 on the NSE. The high was Rs 324.50 and Rs 324.80 respectively. The lows were the open on the two exchanges. The closing was Rs 314.10 on the BSE, a gain of Rs 14.10 or 4.70%. On the NSE the closing was Rs 314.67, a gain of Rs 14.67 or 4.89%.

The traded volume was 31.82 lakh units which was 2.01% of the IPO size. The delivery volume was 27,49,200 units which was 86.40% of the traded volume and 1.74% of the IPO size. If one were to consider the non-anchor and non-strategic investor portion, the traded volume was 4.48% of the IPO size and delivery volume was 3.87%.

While the performance has been good so far, it would be interesting to see the deliveries and traded volumes pick up in future. Also the capital appreciation and change in NAV of the fund would be closely watched.

Markets continued their upward momentum and notched up weekly gains. During the week markets gained on three of the five days and lost on the remaining two days. BSESENSEX gained 508.30 points or 1.33% to close at 38,672.91 points. NIFTY was up 167 points or 1.46% to close at 11,623.90 points. The broader markets saw BSE100, BSE200 and BSE500 gain 1.53%, 1.645 and 1.68% respectively. BSEMIDCAP was up 2.67% and BSESMALLCAP gained 1.82%.

The week also saw March futures expire and they had a great series as well. NIFTY March futures expired at 11,570 points, a gain of 777.50 points or 7.20%. This was one of the best monthly performance in the last few months. The BSESENSEX and NIFTY are literally a stone’s throw away from making new life-time highs. Another way of putting the same thing would be that with under a per cent more required, it could happen any day. Does this mean that we would see a new high on Monday when markets open? Not necessarily, it could take longer.

The Indian Rupee lost 20 paisa or 0.29% to close at Rs 69.15 to the US Dollar. Dow Jones had a strong performance and gained 426.36 points or 1.67% to close at 25,928.68 points.

The week ahead sees RBI meeting for its first monetary policy review of financial year 2018-2019 on April 3rd and 4th. It is believed that there would definitely be a rate cut of 25 paisa. While the 25 basis points cut is given there are a few people who believe that the cut could be more at 50 basis points. While 25 is par for the course, a 50 basis points cut could act as the catalyst for markets to touch new highs if not already done.

Shares of MSTC Limited listed on Friday the 29th of March and they had a poor showing. The company had tapped the capital markets with its offer for sale which was not subscribed at the first attempt and the issue was extended. In the extension, the issue did get oversubscribed. Shares which were issued at Rs 120, closed for the week at Rs 114.20, a loss of Rs 5.80 or 4.83%.

The week ahead sees the offer for sale of RVNL. Rail Vikas Nigam Limited is offering for sale 25,34,57,280 equity shares in a price band of Rs 17-19 with a discount of Rs 0.50 for retail and eligible employees. The issue has opened on Friday the 29th of March and would close on Wednesday the 3rd of April. The company which is a PSU is incorporated by the Ministry of Railways. It executes projects for the Ministry of Railways on assignment basis and is given a consolidated management fee of 8.5% on the project value that it undertakes.

There are two other railway companies which also happen to be listed namely RITES and Ircon. While they also do the job of track laying and electrification, their size in these departments is considerably smaller than what RVNL does?

The company has an order book of over Rs 77,000 crs of which roughly Rs 37,000 crs are long gestation projects. The company would be able to execute the balance of roughly Rs 40,000 crs between 36-42 months. The company is a consistent profit making and dividend paying company. Being part of the PSU stable, it is obligated to pay 30% of profits or 5% of net worth, whichever is higher as dividend. The issue looks attractive.

The second issue is from Metropolis Healthcare Limited which is tapping the capital markets with its offer for sale of 1,30,85,095 shares in a price band of Rs 877-880. The company maybe compared with Dr Lal Path Lab and Thyrocare. While the PE multiple at which the company is valuing itself is cheaper than Dr Lal, it is much more expensive than that of Thyrocare. Further the promoter’s shares are currently pledged and assuming he repays from the sale proceeds of the IPO, he would still be in some debt. Markets don’t take too kindly to pledged shares of the promoter.

There is concern about the valuation and the pledged shares. While the company has grown significantly and has aggressively used the inorganic route, going forward the same may be a tougher option. Setting up touch points through the franchisee route would be the way forward. While opportunity exists, the amount an investor is willing to pay will depend on himself.

Markets in the week ahead are on course to continue their upward march and most probably hit new life time highs on the BSESENSEX and NIFTY. As already mentioned, even after hitting new highs, it’s not as if it would be the end of the road for the markets, momentum would continue. Enjoy the rally and be prepared for volatility as things get choppy in unchartered territory.

MSTC Limited which had tapped the capital markets with its offer for sale and listed, but did not have a good outing. The company had an offer for sale of 1,76,70,400 equity shares and had a compulsory QIB portion of 75%. The issue was open from Wednesday the 13th of March and was to close on Friday the 15th of March. The price band was Rs 121-128 with a discount of Rs 5.50 for retail and eligible employees. The issue failed to garner the requisite subscription from QIB’s and was extended. The revised dates were from Monday the 18th of March to Wednesday the 20th of March and the price band was Rs 120-128. The issue was subscribed overall 1.46 times with each of the buckets QIB, HNI. Retail and Employee subscribed 1.13, 2.15, 2.95 and 1.54 times.

The discovered price on BSE was Rs 111 and Rs 115 on NSE. The high was Rs 116.55 on BSE and Rs 120 on NSE. The lows were Rs 110.05 and 111 respectively. The close was Rs 114.20 on BSE, a loss of Rs 5.80 or 4.83%. On NSE the close was Rs 113.95, a loss of Rs 6.05 or 5.04%.

The traded volume was 4,95,656 equity shares which was 2.81% of the IPO size. The issue did not have an anchor portion so the entire issue is non-anchor. The delivery volume remains the same as the share is trading in the ‘T’ segment where compulsory delivery would happen for the first 10 trading sessions. The weighted average of the day’s trade was Rs 115.35 on BSE and Rs 116.52 on NSE.

All in all, the issue is not of to a good start and one would have to wait for at least a week to see volumes pick up. The fact that 75% was for QIB will also make traded volumes low and difficult.