Quick Heal Technologies Limited (Quick heal) which had tapped the capital markets with its fresh offer of Rs 250crs and an offer for sale of 62.69 lac shares in a price band of Rs 311-321 was subscribed an overall 10.80 times. The company had received good response from Anchor Investors and 10 of them comprising of 13 entities were allotted 41.70 lac shares. The current issue received excellent response from all buckets and HNI or non-retail was subscribed 36.69 times.

The issue had opened on Monday the 8th of February and closed on Wednesday the 10th of February with the allocation on the previous Friday.

Detailed subscription in each bucket is given below: –

Shares of Precision Camshaft Limited listed on the BSE and NSE and had a poor showing. The company had through a simultaneous fresh issue for Rs 240 crs and an offer for sale of 91.5 lac shares in a price band of Rs 180-186 raised Rs 410 crs. The markets were bad and though that could be a reason for the decline, very clearly there was no desire to make fresh commitments.

The discovered price on BSE was Rs 161 and on NSE Rs 165. The lows on the two exchanges were Rs155 and 154.50 respectively while the highs were Rs 184.70 and Rs 185. The share closed at Rs 177.25 which was higher than the weighted average of Rs 176.14 on the BSE and Rs 177.45 on the NSE where the weighted average was 176.19.

There was one HNI delivery trade where Anvil Fintrade sold 5 lac shares at a loss. The selling price was Rs 174.11.

The delivery percentage was very poor at 19.29% on the BSE and 20.81% on the NSE indicating that at these levels people/investors do not want to sell out. The share was under pressure no doubt and looking at the market is likely to see more pressure in the coming days. Considering the fact that about 19% of the non-anchor shares have been delivered on day one, it is likely that it will take time for the share price to stabilize.

All in all a poor listing and the issue of remuneration to the CMD had a telling effect on the share. While he did try to inform investors that going forward it would be as per companies act, the damage was done.

There are strange coincidences in the market which just cannot be explained. One more happened last week when markets had a great Friday like the previous week. The only difference this time was that in the previous week markets closed positive because of Friday’s movement, this time around it just wasn’t enough and closed negative.

The BSESENSEX lost 1.02% whilst NIFTY lost 0.98%. RBI in its policy meet kept rates unchanged on expected lines. There is plenty of action in midcap and smallcap stocks and this week the BSESMALLCAP index lost 2.76%. The valuations of these stocks is still substantially high and needs to further correct.

Primary markets saw the IPO of Teamlease Services Limited got subscribed 66.02 times helped in no small measure by a huge 185 times subscription from the leveraged HNI investor. His cost of funding is roughly Rs 210-215 while grey market premiums were higher. While the success of this issue at this point based on the level of subscription is clearly there, the issue would have to list and trade at a 4 digit level and upwards for a safe exit for HNI’s or there could be panic on the counter.

Another IPO from virus software company Quick Heal Technologies Limited opens today and closes on Wednesday the 10th of February. The issue is in a price band of Rs 311-321 and would raise Rs 445-451 crs. The anchor investors were allocated shares at the top end of the price band and there are a total of 10 anchor investors comprising of 13 entities.

Markets will be choppy and will wait for direction from the Union budget which would be presented on 29th February.