Shares of Varroc Engineering Limited began trading and had a decent outing, closing with gains of 7.59%. The company had tapped the capital markets with its offer for sale of 202.21 lac shares in a price band of Rs 965-967. The company had in its anchor allocation, allotted 60.36 lac shares to 20 anchor investors comprising of 30 entities.

The issue was subscribed 3.59 times with the QIB portion subscribed 9.16 times. HNI portion was subscribed 2.45 times. Retail and employee portion remain undersubscribed at 0.95 times and 0.65 times respectively.

Trading began with the discovered price being Rs 1,032.80 on the BSE and Rs 1,015 on the NSE. The high was Rs 1,062 on the BSE and Rs 1,061.65 on the NSE. The low was an identical Rs 1,000.00 on both the exchanges. The close was Rs 1,040.35 on the BSE, a gain of Rs 73.35 or 7.59%. The close on the NSE was Rs 1,037.35, a gain of Rs 70.35 or 7.28%.

The combined traded volume was 168.18 lac shares which was 83.17% of the IPO size or 118.56% of the non-anchor portion. Delivery volume was 75.22 lac shares which was 44.73% of the traded volume and 37.20% of the IPO size. If one considers the non-anchor portion t was 53.03%. The weighted average of the days trade was Rs 1,028.62 on the BSE and Rs 1,026.76 on the NSE. There was one institutional trade where Nomura India bought 11.07 lac shares on the NSE.

A decent show by Varroc on listing day.

Shares of Rites Limited had a dream run on Monday the 2nd of July when they listed on the bourses. The government of India had through an offer for sale sold 2.52 cr shares in a price band of Rs 180-185. There was a discount of Rs 6 for retail investors and eligible employees. The issue was very well received by all sections and was subscribed 67.24 times. QIB portion was subscribed 71.72 times, HNI portion 194.56 times and Retail portion subscribed 15.74 times. The Employee portion was marginally undersubscribed at 0.96 times. There were 13.76 lakh applications which implies based on forms the retail portion was subscribed 13.11 times.

The share price opened at Rs 190 on both the exchanges and this was also the low of the day. The high was Rs 224.40 on the BSE and Rs 224.50 on NSE. The close was 212.70 on the BSE and Rs 213.30 on e NSE. The gains on BSE were Rs 27.70 or 14.97% while it was Rs 28.30 or 15.30% on the NSE.

The traded volume on the two exchanges combined was 552.29 lakh shares which was 2.19 times the IPO size of 252 lakh shares. Delivery volume was 144.17 lakh shares which was 26.10% of the traded volume and 57.21% of the IPO size. The weighted average of the days trade was Rs 208.12 on the BSE and Rs 207.08 on NSE.

In recent times almost, all issues from the PSU stable barring Mishra Dhatu Nigam have not fared well. This issue from RITES has done exceedingly well and considering the high delivery volume without institutional trade being reported makes the counter interesting. One should not get surprised if this counter becomes another block buster in the immediate medium term.