Shares of Tribovandas Bhimji Zaveri Limited (TBZ) listed on the BSE and NSE yesterday. The company had tapped the capital markets with its IPO during the 24th and 26th of April. The price band was Rs 120-126. The company had also made an allocation of 24.99 lac shares to three anchor investors at the lower end of the price band of Rs 120. The issue overall just about managed to get subscribed with the help of friendly HNI’s who subscribed their portion 1.91 times. Retail portion remained undersubscribed and received support for 68% of their quota. The asking price was expensive and though the company is 146 years old, it by and large remains a Mumbai dominated, Western India company.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 115.00 | 119.80 | 110.00 | 111.20 | -8.80 | -7.33 | 112.29 | 1157716 | 1157716 | 100.00 |
| NSE | 115.05 | 120.00 | 110.50 | 111.00 | -9.00 | -7.50 | 112.15 | 1253983 | 1253983 | 100.00 |
| Total | 2411699 | 2411699 | 100.00 |
The discovered price after the 45 minute call auction was Rs 115 on the BSE. The share opened at Rs 115 and was under pressure throughout the day. The high and low on the BSE was Rs 119.80 and Rs 110 respectively. These prices were seen at the beginning of the day itself with the high happening in the pre-open session and the low within the first few minutes of trade. On the NSE the similar prices were Rs 120 as the high and Rs 110.50 as the low and again these prices happened in a similar fashion as the BSE.
The share traded under pressure throughout the day and the broad trading range was centred around Rs 112 with a movement of one rupee on either side making it a range of between Rs 111-113. The trading volume considering it is and would remain for the next nine days under trade to trade category reasonable at 24.11 lac shares. This is 14.47% of the shares issued at 166.67 lac shares. The weighted average of the day’s trade was Rs 112.29 at the BSE and Rs 112.15 at the NSE. The closing price of the share was Rs 111.20 on the BSE, a loss of Rs 8.80 or 7.33%. On the NSE the closing price was Rs 111, a loss of Rs 9 or 7.50%.
The above price chart shows the day’s trade on BSE. The trade was fairly range bound and on a low key. As mentioned before the issue was just about subscribed and was expensive compared to its listed peers offering little scope for appreciation. The markets whether one talks of the primary or secondary markets, are not in the best of health and this added to the subscription woes.
All in all the first day listing of TBZ leaves a lot to be desired. Investors who have applied will have to hold on to their shares before they are able to recover their investment price. Investors looking to enter the share now that the uncertainty of listing and the price thereafter is over should wait for some time and further weakness before entering the scrip.
The record books would say that yet another IPO, yet another listing and yet another poor show. The day when investors are happy because the issue was reasonably priced seem to be far away.
