CARE listed on the BSE and NSE today and there were decent gains for investors of all categories in the issue. The issue was an offer for sale and raised Rs 540 crs from 71.99 lac shares. The issue price was Rs 750.the issue received excellent response and was subscribed 41 times overall. A noteworthy feature was the fact that a large number of retail applicants applied for the minimum number of shares of 20 shares. The allotment to retail was the minimum lot of 20 shares and the lottery was in the ratio of 2 successful applicants out of 5.

Coming to the actual trading the discovered price was Rs 949 on the BSE and Rs 940 on the NSE. The high and the lows were Rs 100 apart on the BSE and Rs 90 apart on the NSE. The traded volume was 150.13 lac shares which was 2.09 times the IPO size. The delivery percentage of the traded volume was 23.07% but a very significant 48.10% of the IPO size.

From the table above one finds that the weighted average of the day’s trade was Rs 932.88 on the BSE and Rs 930.86 on the NSE. The closing price was Rs 923.95, a gain of Rs 173.95 or 23.19%. The closing price on the NSE was marginally lower at Rs 922.55 or 23.01%. In terms of appreciation this was a decent gain for investors. In terms of deliveries with almost 34.62 lac shares delivered there were no names on the selling side or buying side. The selling side is understandable as retail received 20 shares and with the HNI portion being subscribed 111 times, here also the allotment was very poor. The redeeming feature of this issue has been that leveraged HNI’s have not lost any money on this issue as their cost of funding was Rs 184 and the weighted average of the day is just around that price.

Just last week the SEBI chief Mr Sinha speaking at the “AIBI” meet had cautioned merchant bankers about the improper price fixed for IPO’s and the large number of issues trading below issue price. This seems to be an exception and the fact that this was an offer for sale and the selling shareholders were willing to sell their holding for a price helped in bringing a successful issue to the table. One hopes that more promoters and merchant bankers understand that proper pricing is a key to success for future issues.

The trade for the day indicates that the selling in the stock has been absorbed, and there could be some upward movement in a couple of days’ time. Investors who have been lucky to be allotted shares and not sold as yet should continue to hold their shares for some more time.