Shares of Varun Beverages Limited listed on the BSE and NSE. The issue listed in the backdrop of poor response to its IPO from 3 of the four segments being under subscribed. Secondly coming back to back with the highly successful issue and listing of PNB Housing Finance Limited there were concerns about how it would fare. The company had tapped the capital markets with its simultaneous offer of 1.5 cr shares frsh issue and an offer for sale of 1 cr shares. The price band was Rs 440-445.

The company had allotted 73.5 lakh shares to 14 anchor investors comprising of 18 entities. The overall issue was subscribed 1.86 times.

The discovered price at the BSE and NSE was Rs 430 which was a discount of Rs 15 to the allotment price of Rs 445. The low was Rs 417.10 on the BSe and Rs 416.85 on the NSE. The high was Rs 471 and Rs 471.75 respectively while the close was Rs 461.90 and Rs 459.50.

The traded volume was large at 233.33 lacs which was 0.93 times the issue size and 1.32 times the non-anchor portion. The delivery volume was poor at 38.48 lac which was 16.50% of the traded volume and 15.4% of the IPO size. It was 21.81% of the non-anchor portion. The delivery percentage was quite poor compared to other issues. There was one institutional trade where Mondrian Emerging Markets Smallcap Equity fund bought 10,97,992 shares at Rs 449.46. There were no other institutional trades.

The share closed with gains of 3.8% and 3.26%. Decent considering people were talking of a negative listing. Going ahead the share would have a tough time holding above Rs 445.

Shares of PNB Housing Finance Limited debuted on the exchanges and made stellar gains. The company had made a fresh issue for Rs 3,000 crs in price band of Rs 750-775. The issue received excellent response for the same. The anchor book saw 45 Anchor investors comprising of 71 entities being allotted 1.15 cr shares. The issue was overall subscribed 29.55 times but there were two large HNI bids which were rejected as a result of which the book was overall subscribed one time less at 28.45 times. The breakup of the same was 37.33 times QIB, 79.94 times HNI, 1.35 time’s retail and 0.45 times employee. The leveraged HNI has made a killing in this issue.

The discovered price on the BSE was Rs 863 and Rs 860 on the NSE. This price was higher by Rs 88 and Rs 85 respectively giving gains of over 10%. The share touched a high of Rs 902.95 and Rs 904 on the two exchanges and closed at Rs 890.60 and Rs 891.15 on the BSE and NSE respectively. The gains made an impressive 14.92% and 14.99%.

From the data above one can see that the volume traded was 394.53 lakh shares which was 1.02 times the IPO size of 387.09 lakh shares. Delivery percentage of traded shares was a hefty 45.77% while if looked at from IPO size it was marginally higher at 46.65%. If one looks at traded volume as percentage of IPO size minus the anchor allocation, the same is 1.45 times and delivery percentage 66.45%. This number is important as it indicates the floating stock in the market.

In terms of institutional trade General Atlantic has purchased a total of 56.52 lakh shares at a value of Rs 501.72 crs from the market. This has helped absorb whatever selling could have come from retail or the HNI who was making good money.

The company has announced the quarterly results for the July-September quarter would be announced on 15th November. These results would be keenly awaited as the performance would decide whether this share would trade in three digits or migrate to a four digit pricing.

A good debut for the share and a good Diwali gift for investors.