Shares of Shankara Building Products Limited were off to a flying start and gained over 37% on the day of listing. The company had a listing ceremony at the BSE. The company had launched a simultaneous offer for its IPO which consisted o0f a fresh issue of Rs 45 crs and an offer for sale of 65,21,740 equity shares. The price band was Rs 440-460. The company had issued 22.5 lakh shares to 13 anchor investors comprising of 16 entities. The highest allocation was made to Franklin India and DSP Blackrock who were allocated 10.70 lakh a piece.

The issue had received excellent response and was oversubscribed 41.88 times. The QIB portion was subscribed 51.62 times, HNI 90.68 times and Retail 15.35 times. Retail portion in terms of lots was subscribed just under 13 times.

Coming to the trading itself, the share saw trading of a massive 247.30 lac shares which was 3.3 times the IPO size of 75 lakhs. The delivery volume was 40.52 lakhs which was 16.39% of the traded volume but 54.03% of the IPO size. If one were to exclude the anchor portion which comes with a lock in the same becomes 77.19%. This indicates that even if one were to assume that HNI’s and retail have completely sold out, even QIB’s have booked profit on day one.

The price discovery was Rs 545 on the BSE and Rs 555.05 on the NSE which was a good Rs 105 and Rs 115 higher than the issue price. This incidentally was also the low price and from there the stock price rallied considerably. The high of the day was Rs638 and Rs 636.20 respectively. The share closed around the highs at Rs 632.80 on the BSE and Rs 632.45 on the NSE. The share closed with gains of Rs 172.80 or 37.57% on the BSE and Rs 172.45 or 37.49% on the NSE. The weighted average of the day’s trade was Rs 605.50 on the BSE and Rs 602.64 on the NSE.

The share had a great listing without doubt. In terms of institutional trades, there were none on the sell side but three trades were there on the buy side. Asoka PTE bought 4,00,221 shares, IIFL asset bought 1.50 lakh shares and Girik Wealth Advisors bought 1.34 lakh shares. It would be interesting to see how the share fares in the coming days as the delivery percentage has been very high.

The financial year 2016-17 has come to an end and it was a good year for the equity markets.The BSESENSEX ended the year with gains of 4,279 points or 16.88% for the year at 2,962.50 points. Of this as much as 2,994 points or 11.24% was in the last quarter of the financial year. Similarly NIFTY ended the year with gains 1.75,435 points or 18.54% to end the year at 9173.75 points. Of this 988 points or 12.07% was in the last quarter. Notebandi did have an effect on the market as the major portion of the gains in the fourth quarter have come on account of the same. What has really driven the market in the last month of the year is the spectacular performance of BJP in Uttar Pradesh where they won 323 seats out of 403.

This election victory is further confirmed as a big trigger by the FII’s. They are an integral part of our marketand they were buyers for the year with net purchases ofRs 50,000 in the year. Of the above Rs 30,000 was in the last quarter or January-March 2017.

Coming to the week, the BSESENSEX notched up gains of 199.10 points or 0.68% while NIIFTY gained 65.75 points or 0.72%. March series ended with gains of 234.25 points or 2.62% at 9,173.75 points. Friday incidentally was an unchanged day for NIFTY while SENSEX was down 27 points.

Shares of CL Educate Limited and had a very poor showing on expected lines. The company had a simultaneous fresh issue for 21.80 lakh shares and an offer for sale of 25.80 lakh shares in a price band of Rs 500-502. The discovered price was Rs 398 on the BSE and Rs 402 on the NSE. The share then recovered some lost ground and closed at the 5% upper circuit at Rs 417.90 on BSE and Rs 422.10 on the NSE, with losses of 16.75% and 15.92% respectively. What is damaging for the company at this point of time is the extremely poor volume which saw a mere 3.67% of the IPO size being traded. It sure would take a long time before shares bought by investors change hands.

The week ahead sees RBI meet for its policy review on Wednesday and Thursday the 5th and 6th of July. It is by and large expected that interest rates would be kept unchanged even though headline inflation numbers are under control. The thinking is that with the US Fed likely to continue its rate raising stance, any reduction in India could be counterproductive and we could see a huge outflow on the debt front.

The first big result for the quarter January to March 2017 would be from Infosys on Thursday the 13th of April. Whether this 13th is lucky or unlucky for the company’s performance one would have to wait for another 10 ten days. One thing however is sure that Donald Trump has kept this sector under the spotlight with his yet to be finalised policy on visas. The IT industry is currently facing a lot of headwinds and is under pressure.

The week ahead has a trading holiday on Tuesday for Ramnavami. The budget has been passed and so has the GST Bill. It (GST) seems all set for a July roll out and in the coming month’s one will see a number of states passing the relevant bills for GST to ensure the July 2017 deadline.

Everyone is waiting for a correction to enter the markets but that simply doesn’t happen. On every dip we see a huge amount of money being brought in and indices bounce back. The mood is indeed optimistic and with the government having numbers they are now able to push things as never before. In the recent GST bill, there were five changes introduced and passed by the Rajya Sabha which were all voted out by the Lok Sabha and the bill standing as originally proposed. Post April 18 when the next big round of voting happens in Rajya Sabha, BJP which is currently behind the congress in terms of number of seats would become the largest party. While they would still not have a majority, they would be able to breathe much easier.

With a mid-week holiday on Tuesday and RBI meeting following that, there would be thin volumes in the coming week. Markets are likely to trade in a tight zone and wait for some unexpected news which could act as a trigger. Bide out time and wait for dips to enter the market.

Shares of CL Educate Limited listed on Friday the 31st of March at the NSE where there was a listing ceremony. The ringing of the gong for the debut of shares to begin trading did not quite turn out to be what was expected. The price discovered was at Rs 398 and Rs 402 against the issue price of Rs 502. The discovered price was roughly 20% lower. The shares are traded on both the exchanges, BSE and NSE.

The company had earlier launched its simultaneous offer with the fresh issue component of 21.80 lakh shares and an offer for sale of 25.80 lakh shares. The price band was Rs 500-502. The company had allotted 14.28 lakh shares to nine anchor investors comprising of 17 entities. Four anchor investors each have been allotted 1,99,230 shares or 13.95% of the anchor portion.

The issue was subscribed but it may be said that the response was not very encouraging. The QIB portion was subscribed 3.65 times, HNI undersubscribed at a mere 0.21 times and retail at 1.63 times. There were a total of 73,000 applications which means that the issue on number of lots was subscribed 1.33 times. Considering that the retail size in recent issues has seen very encouraging response, this issue was not in the investor’s radar. The valuation, sector problems and recent issues in this sector doing badly were some of the reasons for the lacklustre performance. To top it all the company investing in building schools and a university added to their woes. While the company has done a deal to exit the schools and university, quite a bit of damage has already been done.

Coming back to the listing day, the issue traded at the upper band of the discovered price thereafter on very thin volumes. The total volume traded of the share which is in trade to trade mode for ten days was a mere 1.74 lac shares against the IPO size of 47.6 lakh shares, which means just 3.67%. This volume is probably one of the lowest in quite some time and shows the lack of interest even after the share was trading 16-17% lower.

From the table above one can see that the weighted average of the day was at Rs412.88 on the BSE and Rs 417.93 on the NSE. Post price discovery volume happened at the 5% upper circuit and the lower weighted average is on account of trade at the price discovery. Delivery was 100% as the share is traded in the trade to trade category.

All in all a very disappointing show. One needs to see whether support comes in at the lower levels in the coming days. Volume will be a key concern for the share.