Larsen & Toubro Infotech Limited (L&T Info) which is tapping the capital market with its offer for sale of 1.75 cr shares in a price band of Rs 705-710 completed allocation to anchor investors. A total of 52.5 lakh shares were allotted to 20 anchor investors comprising of 22 entities. The largest allotment of 22,53,540 equity shares or 42.92% was made to a single entity namely Auburn Limited. This kind of concentrated allotment has not been seen in a long time. There are a large number of names which are unheard as anchors and they have come in this time. Whether this is a new trend or they have come for the long relationship that they enjoy with the parent will remain unresolved.

The company is also offering a discount of Rs 10 per share to retail investors for the issue which opens for subscription on Monday the 11 th of July and closes on Wednesday the 13 th of July.

The full list of anchor investors and their allocation is given below: –

The markets had a great week and did quite well for themselves. The BSESENSEX and NIFTY gained just under 3% while the Dow Jones gained a little over 3.15%. June futures expired with gains of 2.70% and almost all of it came in the last four days of trading. The monsoon has advanced into larger parts of the country and parts of Maharashtra which about two months ago were under severe drought could face a problem now of floods. Such is the fury of nature. The Indian cabinet approved the pay hike of central government employees and this would also act as a kick starter to more demand and therefore growth.

The primary markets seem to be having a whale of a time. The shares of Mahanagar Gas Limited (MGL) listed on Friday and gained 23.5%. Shares were allotted at Rs 421 and closed with gains of just under Rs 100 at 519.90. The IPO from Quess Corp Limited closed for subscription on Friday and received a tumultuous response being subscribed 144.50 times. The QIB portion was subscribed 59.03 times, HNI 92.21 times and retail 34.08 times. Total applications received were 7.30 lacs which implied that on the basis of applications the retail portion was subscribed 26.04 times. Effectively there would be one lucky allotment from 26 applicants. The key takeaway from these two IPO’s is everything sells at a price.

The demand generated from HNI’s in Quess Corp was Rs 23,520 crs or 58.8 times the issue size of Rs 400 crs. Almost all of this money was from leveraged funds and the only category really making money would be the financers. The rate of interest which began in the issue and the previous one at 8% was reduced to 6.5%, indicating the huge spreads available to the financers and their ability to reprice.

The US celebrates their independence day and markets would therefore be closed. We have had a great run in the last few weeks barring the one day of BREXIT and some consolidation is overdue. Take some money of the table to redeploy when things cool off and that readers could be as quickly as the latter half of the week. Volatility would continue to dominate price movements.