The offer for sale from Endurance Technologies Limited excellent response and was subscribed 43.84 times. The company had tapped the capital markets with its offer for sale of 2.46 cr shares in a price band of Rs 467-472. The company had allotted 73.83 lac shares to 24 anchor investors comprising of 38 entities.
The response from QIB’s saw the portion being subscribed 53.43 times and HNI’s 127.07 times. The cost of funding considering 4.5% for seven days works out to Rs 52. Even if one considers an interest rate of 4.75% the interest cost moves up Rs 54.50 giving them an edge as per grey market premium. The retail portion was subscribed 2.23 times. The total number of applications received was 6.41 lakhs which was 2.23 times retail subscription based on number of applications. The retail response was somewhat muted on account of poor listing of some of the recent IPO’s. Retail investors are stuck with shares and not able to sell on listing which is what is normally done by most retail and all HNI investors.

The offer for sale from Endurance Technologies Limited saw it completing its allocation to anchor investors. The company through the offer for sale of 2.46 cr shares in a price band of Rs 467-472 is tapping the markets between Wednesday the 5th of October and Friday the 7th of October. The company has allotted 73,83,906 equity shares to 24 anchor investors comprising of 38 entities. There are 10 local mutual funds confirming the widespread interest in the auto ancillary company.
The full list of anchor allotment is appended below: –

Shares of HPL Electric & Power Limited (HPL) listed on a subdued note at a discount of 6%. The company had issued fresh shares worth Rs 361 crs in a price band of Rs 175-202. The issue size was Rs 361 crs. The company had allotted to 8 anchors comprising of 13 entities 53,61,385 shares at Rs 202. The issue was subscribed 8.06 times with QIB portion subscribed 5.77 times, HNI 22.20 times and Retail 3.31 times.
The discovered price was Rs 190.05 on the BSE and Rs 190 on the NSE. The high was an identical Rs 198 on both the exchanges. The low was Rs 184.30 on the BSE and Rs 184.25 on the NSE. The combined traded volume was a massive 182.26 lakh shares which was 1.02 times the IPO size. If one looks at the IPO size minus the anchor investors whose shares are locked in it is 1.46 times. The delivery volume was 39.14 lakh shares or 21.48% of the traded volume. It was 21.91% of the IPO size and 31.29% of the non-anchor issue size. Large quantity delivered but share traded in a narrow band of Rs 186-192.

The weighted average was Rs 189.71 on the BSE and Rs 189.41on the NSE further confirming the narrow band of trading. The share looked overpriced and has corrected on listing. The HNI portion was subscribed through leveraging and the same needs to be liquidated for demand supply to adjust.
Back to back two listings are trading at a discount and the third issue from L&T Technology Services managed to hold for a couple of days before trading at a discount. The trend of over pricing needs to be corrected before it’s too late.