Speciality Restaurants: Share Gains 7% on Listing Day

May 31st, 2012 Comments Off on Speciality Restaurants: Share Gains 7% on Listing Day

 

Speciality Restaurants Limited better known for its flagship restaurant ‘Mainland China’ listed on the NSE and BSE yesterday. The price discovered after the auction was Rs 153 on the BSE and Rs 152 on the NSE. The company had issued shares at Rs 150. The issue was subscribed an overall 2.54 times and remained undersubscribed in the Retail category. The price band was Rs 146-155 and the issue size was 117.39 lac shares.

Exchange Open High Low Close Net Change % Gain/loss Wt. Avg Volume Delivery Del %age
BSE 153.00 160.65 152.90 160.65 10.65 7.10 156.82 766401 766401 100.00
NSE 152.00 159.60 152.00 159.60 9.60 6.40 156.53 148440 148440 100.00
Total 914841 914841 100.00

The issue received lukewarm response from the retail category on account of the high valuations. A serious effort was made to market this company by comparing it with a ‘QSR’ format pizza chain. The effort fell through simply because the two models are not comparable. Speciality’s USP is a fine dining experience and that cannot be done on a take away or a telephonic order.

The share of the company received a great boost on day one when Reliance Mutual Fund who was an anchor investor and also an investor in the QIB book, decided to buy on day one. Reliance bought 4,57,405 shares on day one which accounted for half the shares transacted on that day. The average of the day on the BSE was Rs 156.82 while that of Reliance was higher at Rs 158.88 indicating that they began buying late in the day. Their buying into the scrip will ensure some more action in the coming days.

The share hit the upper circuit at just about 10 am and remained there till the end of the day. The share has done reasonably well for itself considering the fact that it was overpriced. Some more upside because of the interest shown by one of the large mutual funds is imminent. All in all a gain of about 7% is good considering the challenging environment and the market conditions. The traded volume at a mere 7.79% is extremely poor under whatever circumstances.

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Performance of Newly Listed Shares as on 25th May 2012

May 28th, 2012 Comments Off on Performance of Newly Listed Shares as on 25th May 2012

Name Date of listing Issue Price closing  price closing price % gain loss  change over
25th May 18th May over week  lssue price
NBCC 12th April 106.00 80.80 80.95 -0.14 -23.77
MT Educare 12th April 80.00 94.65 94.20 0.56 18.31
TBZ 9th May 120.00 116.05 116.70 -0.54 -3.29
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Speciality Restaurants IPO: Issue Subscribed

May 19th, 2012 Comments Off on Speciality Restaurants IPO: Issue Subscribed

The IPO from Speciality Restaurants Limited better known as ‘Mainland China’ was subscribed. The company had launched its IPO in a price band of Rs 146-155. The issue was open between the 16th and 18th of May and was subscribed 2.54 times. The total issue size was 117.39 lac shares of which 17.61 lac shares were allotted to anchor investors at a price of Rs 150.

The issue received support from QIB’s particularly domestic mutual funds who subscribed to 123.13 lac shares against a total of 253.79 lac shares which were bid for. The retail portion remained undersubscribed and received bids for 22.79 lac shares against a quota of 41.09 lac shares. The retail portion was subscribed 0.55%.

The markets were weak on Friday mirroring global markets. The subscription levels as of the penultimate day were a mere 0.02%. The markets began recovering after a stellar performance from State Bank of India. The bank announced results which have bettered the most optimistic result on the street by miles. Shares of SBI which had closed at Rs 1,848 on Thursday zoomed to close at Rs 1,942, a gain of Rs 94 or 5.08%. SBI results changed the sentiment in the market and the BSESENSEX recovered from its intraday low of 15,809.71 points to close at 16,152.75 points, an intraday gain of 343.04 points and a net gain on closing basis of 82.27 points. The timing of SBI results leading to the recovery in the markets and the response to Speciality Restaurants issue seem to be interlinked.

The details of the subscription level in various categories are given below: –

Category Shares Offered Shares Subscribed Times
QIB 4108795 19237280 4.68
NII 1760912 3863000 2.19
Retail 4108796 2279280 0.55
Overall 9978503 25379560 2.54

Anchor investors were allotted at a mid-price of the band at Rs 150. I believe that the issue is likely to get priced at Rs 150 or thereabouts as the overall response was poor but considering the market conditions it is not so bad. The issue was expensive and considering that fact, retail investors avoided the issue. The company is in the business of food and serves non-vegetarian food as well making a section of investors avoid the issue.

All in all the subscription in trying times is an achievement and one would expect that post listing in the ten day period when the share trades in trade-to-trade category it trades at par if not higher.

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