Shares of Healthcare Global Enterprises Limited (HCG) listed on the bourses yesterday. The company had tapped the capital markets with its IPO which consisted of a primary offering of 116 lakh shares and a secondary offering of 182 lakh shares in a price band of Rs 205-218. The company had allotted shares to 11 anchor investors comprising of 13 entities at the top end of the price band at Rs 218.

The response from QIB’s saw the QIB bucket oversubscribed 2.36 times while the HNI and retail remained undersubscribed at 0.43 times and 0.83 times respectively. The overall issue was subscribed 1.56 times.

The share listed below the allotted price at around Rs 211 and saw a slide in value virtually through the day. The low of the day was Rs 169 on the BSE and Rs 169.10 on the NSE. The weighted average was substantially higher than the close of Rs 171 at Rs 182.58 on the BSE and Rs 182.33 on the NSE.

Two institutional investors have sold on the day of listing and added to the carnage that happened. Goldman Sachs sold 6,99,714 shares at an average of 183.39 while Morgan Stanley sold 4,43,060 shares at an average of Rs 182.52. the combined total of these two entities is almost 40% of the delivery volume of the day. The total traded volume at 139.6 lakh shares was a mere .47 times the IPO size of 298 lakh shares. The delivery volume of 28.8 lakh shares was 20.65% of the traded volume and a mere 9.67% of the IPO. The damage that this has caused to the price was substantial with the share closing at Rs 171, a loss of Rs 47 or 21% to the issue price of Rs 218.

Disappointing start for the company and there needs to be introspection on what went wrong.

Markets would begin trading today after an extended weekend with religious holidays on Thursday and Friday. Markets gained about one and a half percent with the benchmark BSESENSEX up 1.54% and NIFTY 1.47%. The week ahead sees March futures expiring on Thursday the 31st of March with the series up a staggering 10.70%.

Ever since the budget was presented markets have been on a roll and have gained over 2,700 points on the BSESENSEX from the low of 22,600 on budget day. All eyes are now on the RBI governor and there is hope that he would oblige with a rate cut. There is also a possibility that if he so decides he may do it even outside the policy and we have a gift in the form of a rate cut on the very first day of April.

Primary markets saw two issues closing in the week gone by and both of them managed to get subscribed. The first was Bharat Wire Ropes which raised Rs 70 crs in a price band of Rs 40-45 was subscribed 1.21 times. The second was Infibeam Incorporation Limited which was to raise Rs 450 crs in a price band of Rs 360-432. The issue had a reservation of 75% for QIB’s and just managed to get subscribed with the number of shares bid to be allotted at the top end of the band. The response was disappointing considering the fact that not a single share was bid for by domestic funds even though they had the best resource mobilisation in the calendar year 2015. E-commerce is the buzz word and this was the first company to list on the bourses, yet such cold response is intriguing. The listing of this stock will cause an upheaval in the valuations and ratings of private equity funded e-commerce companies in the country.

The beginning of the new financial year will see a spate of issues tapping the markets and once again two micro finance companies are expected to do so in April 2016. They are likely to be Equitas which is a Chennai based company into micro finance, home loan and vehicle finance and Ujjivan a pure micro finance player. There is a catch in these two issues that FII’s cannot apply in the IPO but may buy post listing with some conditions. How they fare without FII support would be a moot point.

Shares of Healthcare Global Enterprises the oncology hospital chain are to list this week. The issue had been oversubscribed.

Markets would be volatile and it would be interesting to see how the bulls press home their advantage in the four days of trading remaining in the current settlement. Coincidentally 31st March when futures expire would also be a day for NAV propping and we could see some crazy price movements in select stocks.

Bharat Wire Ropes Limited (BWR) which had tapped the markets with its issue to raise Rs 70 crs was subscribed. The issue was a compulsory 75% QIB issue. The price band was Rs 40-45 and the company is setting up an integrated wire to wire ropes factory in Chalisgaon Maharashtra at a cost of Rs 500 crs. The company enjoys a mega project status and is eligible for state incentives like stamp duty, electricity duty and VAT refund.

The issue was subscribed with each of the bucks oversubscribed except employee quota which wqas undersubscribed. The overall issue was subscribed 1.21 times.

Full details of the subscription are given below: –