Karda Constructions Limited which had tapped the capital markets with its fresh issue of 43 lac shares in a price band of Rs 175-180. The issue had opened on Friday 16th of March and closed on Wednesday the 21st of March. There was no anchor allocation and the issue were divided into 10% for QIB’s, 40% for HNI’s and 50% for retail.

The issue was subscribed 1.55 times by QIB’s, 3.43 times by HNI’s and 2.01 times by retail. The issue was valued at a price earnings multiple based on March 2017 numbers of a stiff 21.79-22.42 based on earnings of Rs 8.03. Considering that Nasik is a tier-2 city, valuations looked expensive. The issue did receive reasonable response considering the flood of IPO’s in the market.

Details of the subscription are given below: –

Sandhar Technologies Limited which had tapped the markets with its simultaneous fresh issue and offer for sale was subscribed. The issue consisted of a fresh issue of Rs 300 crs and an offer for sale of 64 lakh shares in a price band of Rs 327-332. Earlier the company had allotted46,30,842 equity shares to 15 anchor investors comprising of 21 entities. The highest allocation made was of 3,31,290 equity shares or 7.15% of the anchor portion. This was made to seven anchor investors and included names like DSP Blackrock, Aditya Birla Sun Life and UTI amongst others.

The issue was well subscribed across segments. The QIB portion was subscribed 14.49 times. HNI portion was subscribed 6.39 times and retail portion was subscribed 1.42 times making the overall subscription 6.19 times.

Full details of the subscription are given below: –

ICICI Securities Limited which is tapping the capital markets with its offer for sale of 7,72,49,508 shares completed allocation to anchor investors. The company allotted 3,30,24,165 equity shares to 33 anchor investors comprising of 58 entities. The price band is Rs 519-520. The issue has opened on Thursday the 22nd of March and closes on Monday the 26th of March.

The highest allocation has been done to Pioneer Investment Fund who has been allotted 31,73,100 shares or 9.61% of the anchor allocation.

The issue is richly valued and does not offer scope for appreciation on listing. The earnings for the year ended March 2017 were at Rs 10.48 which puts the price band at 49.4-49.5 times. The earnings for the first nine months ended December 2017 were at Rs 12.39 which if annualised comes to Rs 16.52. The PE multiple at these earnings is 31.41 to 31.47. The company is promoted by a bank and therefore unlike its peers in the broking fraternity does not have a NBFC arm. It has however introduced a margin funding product and has raised commercial paper for the same. Going forward if this product does well, I believe the company is likely to strengthen the product and introduce newer variants which would include loan against shares and IPO application funding.

The full list of allotment and anchor investors is given below: –