| Name | Date of Listing | Issue Price | closing price | closing price | % gain loss | change over |
| 30th Sept | 23rd Sept | over week | lssue price | |||
| Brooks Laboratories | 5th Sept | 100.00 | 23.25 | 27.60 | -15.76 | -76.75 |
| TD Power Systems | 8th Sept | 256.00 | 256.40 | 269.80 | -4.97 | 0.16 |
| SRS | 16th Sept | 58.00 | 33.30 | 33.95 | -1.91 | -42.59 |
| PG Electroplast | 26th Sept | 210.00 | 312.05 | N A | 48.60 | 48.60 |
Performance of Newly Listed Shares as on 30th September 2011
October 1st, 2011
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PG Electroplast: Sedate start, Great Finish, Stock ends day one with gains of 96%
September 27th, 2011
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PG Electroplast Limited listed on the BSE and NSE yesterday. The company had issued 57.45 lac shares in a price band of Rs 190-210. The issue was subscribed an overall 1.34 times. The share listed at the BSE at Rs 200 and on the NSE at Rs 215. The high of the day was Rs 490 on the BSE and Rs 484.40 on the NSE. The low was Rs 175.05 on the BSE and Rs 176 on the NSE. The close of the day was a spectacular Rs 411.65 on the BSE and Rs 415.30 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 200.00 | 490.00 | 175.05 | 411.65 | 201.65 | 96.02 | 260.23 | 29249235 | 1094834 | 3.74 |
| NSE | 215.00 | 484.40 | 176.00 | 415.30 | 205.30 | 97.76 | 259.32 | 40012115 | 2019414 | 5.05 |
| Total | 69261350 | 3114248 | 4.50 |
The stock opened steady and moved in a band alternating between a small gain of Rs 10-15 to the issue price and a loss of Rs 25-20 to the issue price. This continued till about 12 noon, and then the share took off. It rose sharply on huge volumes to past the 300 level and then fell equally sharply to Rs 225. The rise and the fall took roughly 75 minutes and the entire duration of this rally and fall was accompanied with huge volumes. The last 75 minutes of trade saw the stock rise one way from the level to make the high of Rs 490 on the BSE and Rs 484.40 on the NSE. The weighted average of the day saw the closing price come down sharply and the close was Rs 411.65 on the BSE, a gain of Rs 201.65 or 96.02%, while the close on NSE was Rs 415.30 or Rs 205.30, a gain of 97.76%.
PRICE CHART TO BE APPENDED The traded volume on the two exchanges was a significant 692.61 lac shares which was 12.06 times the IPO size of 57.45 lac shares. The delivery volume was 31.14 lac lac shares which was a mere 4.5% of the traded volume but a significant 54.21% of the IPO size. The weighted average of the day was Rs 260.23 on the BSE and Rs 259.32 on the NSE. The huge difference in the weighted average and the closing price is because of the huge spurt in the last seventy five minutes of trade when the share rose over Rs 200. The trading pattern suggests that people were caught short and that led to the huge rally or spurt in the share in the last 75 minutes. The point that is not clear is the lower delivery percentage, because normally with such sharp movements and investor making money it would be prudent to assume that the delivery percentage of IPO size would be around 80%. This means that people are holding on and are yet to sell.
The pattern also indicates that there was an effort made to trap day traders and the movements also suggest that the sharp up and down moves achieved the purpose and day traders were trapped. This kind of activity is now rampant in the market place and it is fair to assume that such activities are actually permitted or are done with SEBI totally ignoring the on-going activity on listing day. Similar is the case with many of the new IPO’s particularly the recent ones and the issues currently on, where they have very poor fundamentals and are subscribed to by “friendly” intermediaries and then the price is “rigged” on listing day and subsequently investors are trapped when the share starts falling.
Coming back to PG, it was a great performance for the company and gains of just under 100% are significant. The fact that investors have made money is a positive sign and speaks well for the company. One hopes that these gains remain for some time.
RDB Rasayans IPO: Issue Subscribed
September 26th, 2011
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RDB Rasayans Limited which had tapped the capital markets with its IPO for 45 lac shares in a price band of Rs 72-79 was subscribed. The issue was to raise Rs 32.40 crs at the lower end of the price band and Rs 35.55 crs at the upper end of the price band. The issue was expensive and had poor fundamentals. As expected there was not even a single bid from the QIB’s. The HNI portion also remained unsubscribed and received support for 75% of the allocation reserved for the category. It was the retail investors who bid for the issue and subscribed the category close to 4 times and helped the overall issue get subscribed 1.5 times.
It may be mentioned that there is another issue from the same FICB industry opening next week namely Flexituff and yet another issue from the same industry which was to open in the next week which has deferred the issue for the time being. This issue was from Plastene.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 2250000 | 0 | 0.00 |
| NII | 675000 | 506240 | 0.75 |
| Retail | 1575000 | 6244320 | 3.96 |
| Overall | 4500000 | 6750560 | 1.50 |
Now that the issue has been subscribed it would be in place to expect the issue to be priced at the upper end of the price band. Markets are in a bad shape and when such issues which are subscribed with the help of “friendly” intermediaries alone hit the market, it makes life that much more difficult for investors.
RDB Rasayans was one more IPO which opened and has been subscribed. Shraddh or no Shraddh, issues will come and the only person who will pay for the same is the hapless investor who will get stuck in such issues.
