Shares of Khadim India Limited listed on the bourses and had a poor start to their listed life losing 8.20%. The company had tapped the capital markets with its simultaneous fresh issue for Rs 50 crs and an offer for sale of 65,74,093 shares. The price band was Rs 745-750. The company had allotted 21,72,227 equity shares to 13 anchor investors comprising of 17 entities.

The issue was subscribed 1.90 times overall with QIB portion subscribed 2.44 times, HNI undersubscribed 0.18 times and Retail subscribed 2.33 times. Very clearly the market did not like the valuations and hence the poor response from HNI’s who chose to avoid the issue.

The scrip opened at Rs 727 on the BSE and Rs 730 on the NSE. The high was Rs 740 and Rs 739.65 respectively while the low was Rs 677.30 and Rs 680.00 respectively. The share closed under pressure at Rs 688.50 on the BSE and Rs 688.85 on the NSE.

The traded volume was 34.25 lakh shares which as 47.30% of the IPO size of 72.40 lakh shares. The delivery volume was 6.34 lakh shares which was 18.52% of the traded volume and 8.76% of the IPO size. This means that even retail investors who had subscribed their portion have not been able to exit. There is more pressure on the share likely in the coming days. The weighted average for the days trade was Rs 711.40 on the BSE and Rs 713.38 on the NSE. This clearly shown that the share just cracked towards the end of the day.

There was just one trade which was reported in the form of Kiduja India Limited which bought 2 lac shares at a price of Rs 730. The net loss in the scrip on day one was Rs 61.50 or 8.20% on BSE and Rs 61.15 or 8.15% on the NSE. Clearly yet another case of over pricing by the exiting PE investor which has left the company and its shareholders down in the dumps. How long the share would take to come out of this mess is anybody’s guess.

Shares of New India Assurance Company Limited debuted on the bourses and the listing result was poor. Shares which were issued at Rs 800 closed for trading at Rs 725.05 on the BSE, a loss of Rs 74.95 or 9.37%. On the NSE the closing price was Rs 727.10, a loss of Rs 72.10 or 9.11%.

The company had tapped the capital markets with its fresh issue of 2.4 cr shares and an offer for sale of 9.6 cr shares was fully subscribed. The price band was Rs 770-800 with a discount of Rs 30 for retail shareholders and eligible employees. The overall issue was subscribed 1.19 times with the bulk of the response coming from QIB’s. LIC OF INDIA was a big subscriber and helped in getting the issue through. Retail and HNI’s were wary of subscribing on the back of a poor listing of GIC RE. While QIB portion was subscribed 2.34 times, HNI portion was undersubscribed at 0.12 times and retail at 0.11 times. The employee quota was also undersubscribed at 0.21 times.

The share began trading at Rs 748.90 on the BSE and Rs 750 on the NSE. The high of the day was Rs 749 and RS 750 respectively. The lows were Rs 717.75 and Rs 717.40. The close of the day was Rs 725.05 on the BSE, a loss of Rs 74.95 or 9.37%. On NSE the close was Rs 727.10, a loss of Rs 72.90 or 9.11%.

The traded volume was 29.69 lakh shares which was a mere 2.47% of the IPO size. This being a PSU, there was no anchor investors. The delivery volume was 5.23 lakh shares which was 17.63% of the traded volume and a mere 0.44% of the IPO size. The IPO as mentioned earlier was undersubscribed in the non-institutional category and it can be clearly seen that whatever trading has happened is largely speculative in nature. The overall volume n the share was extremely pathetic and one does not remember such poor volumes on listing day in the near past. The weighted average of the day was Rs 730.43 on the BSE and Rs 729.83 on the NSE. The weighted average was higher than the close on both the exchanges indicating that there was selling pressure.

While the allotment price was Rs 800, retail and employees were given a discount of Rs 30 to the issue price. The spate of insurance companies which have collectively raised Rs 45,000 crs have killed the appetite for insurance company shares and also the market.

One hopes that the issue from HDFC Standard Life does not meet a similar fate.