| Name | Date of Listing | Issue Price | closing price | closing price | % gain loss | change over |
| 26th Aug | 19th Aug | over week | lssue price | |||
| Bhartiya Global Infomedia | 28th July | 82.00 | 12.60 | 13.10 | -3.82 | -84.63 |
| Inventure Growth & Securities | 4th Aug | 117.00 | 133.95 | 165.45 | -19.04 | 14.49 |
| L&T Finance Holdings | 12th Aug | 52.00 | 46.15 | 44.85 | 2.90 | -11.25 |
| Tree House Education & Acessories | 26th Aug | 135.00 | 116.55 | N A | -13.67 | -13.67 |
Performance of Newly Listed Shares as on 26th August 2011
August 29th, 2011
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TD Power Systems IPO: Issue Subscribed
August 29th, 2011
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TD Power Systems Limited which had tapped the capital markets with its IPO to raise Rs 227 crs was subscribed. The price band was Rs 256-261. The market conditions during the period that the issue was open was very depressing and it indeed is a credit to the fundamentals of the company that they could receive excellent response from QIB’s and they subscribed their portion 6.52 times. The other two categories received lukewarm response and their portions were subscribed 38% each.
The company had allocated 15% of the IPO to anchor investors at Rs 256.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 3129042 | 20391000 | 6.52 |
| NII | 1330079 | 502600 | 0.38 |
| Retail | 3103516 | 1183650 | 0.38 |
| Overall | 7562637 | 22077250 | 2.92 |
It’s a long time since one has seen an IPO being subscribed on the basis of support from just the institutional investors. In the other cases where the issues were “managed” the issue received mediocre support from the institutional investors and was subscribed on the basis of support from HNI’s and retail. These issues invariably fall after listing whether it happens on the day of listing or sometime later.
All in all encouraging response from QIB’s and lends support to the fact that issues are still saleable if they have fundamentals.
SRS IPO: Issue Subscribed
August 29th, 2011
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SRS Limited which had tapped the capital markets with its IPO in a price band of Rs 58-65 was subscribed. The issue was for 3.5 cr shares and had opened for subscription on the 23rd of August and closed on Friday the 26th of August. The issue received support from HNI’s and this support helped the issue to get subscribed. The response from them was 5.11 times their portion. The QIB portion was subscribed 75% and the retail a mere 32%. The asking price was expensive and the secondary markets during the time that the issue was open turned very negative and fell sharply. The overall issue was subscribed 1.25 times.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 1750000 | 13048800 | 0.75 |
| NII | 5250000 | 26814000 | 5.11 |
| Retail | 12250000 | 3864400 | 0.32 |
| Overall | 35000000 | 43727200 | 1.25 |
Looking at the subscription and the price bids made it appears that the issue would be priced at the lower end of the price band at Rs 58. It may be said that the present market scenario was not the ideal one to raise resources and the QIB subscription is indeed creditable as it appears to be from domestic mutual funds and banks showing the confidence in the management. The poor subscription from retail is based on the poor perception of investors about the secondary market considering that we have even broken the 16,000 mark and there seems to be very little hope of immediate recovery.
It would be important for the company to deliver on its performance post listing and ensure that the net margins show the necessary improvement going forward.
