Shalby Limited which had tapped the capital markets with its simultaneous offer listed on the bourses and had a tepid listing. The issue comprised of a fresh issue to raise Rs 480 crs and an offer for sale of 10 lakh shares. The price band was Rs 245-248. The company had allotted 60,70,150 equity shares to 11 anchor investors comprising of 13 entities. The highest allocation was done to Goldman Sachs who was allotted 9,67,740 shares which was 15.94% of the equity issue.

The issue was subscribed 2.82 times overall with QIB portion subscribed 4.34 times. HNI portion remained undersubscribed at 0.42 times while retail was subscribed 2.98 times. Employee quota was subscribed 1.44 times. There were 3.19 lakh applications which meant the retail portion on basis of number of lots was subscribed 2.71 times.

The discovered price on the BSE was Rs 237 while on the NSE it was Rs 237.90. From there the share rose to touch a high of Rs 254.65 on the BSE and Rs 254.80 on the NSE. The share traded lower from the highs and was fairly range bound between Rs 244-248. In the last hour or so some sort of selling pressure emerged and the share made its low of Rs 236.15 on the BSE and Rs 236.45 on the NSE.

The closing price for the day was Rs 239.25 a loss of Rs 8.75 or 3.53% on the BSE. The closing price on NSE was Rs 239.60, a loss of Rs 8.40 or 3.39%. The traded volume was 121.58 lakh shares which was 59.73% of the IPO size of 203.54 lakh shares. Delivery volume was 24.31 lakh shares which was 20% of the traded volume and 11.95% of the IPO size. The weighted average of the day’s trade was Rs 245.88 on the BSE and Rs 246.13 on the NSE. This clearly shows that those investors who wanted to do so on day one got a chance to exit with minor losses of under one percent. There were no institutional trades reported.

Decent company but because HNI’s were confident that this issue could not get oversubscribed 100 times chose to ignore the issue as the margin for funding would be high. Its high time the regulator looked into the issue and banned HNI’s for applying for the QIB portion which in any case is not fungible for them. This itself will make the magical 100 figure oversubscribed that much difficult as they would need 30 people to subscribe to half the issue size to get that number.

One hopes the regulator looks into the issue and realises that there is hardly a case where retail has undersubscribed their portion and the shortage has been met by HNI’s. The reverse has happened in quite many issues. One more issue which would go down as listed below issue price on day one.