Sudar Garments: Great start, share closes with gains of 47%

March 13th, 2011 Comments Off on Sudar Garments: Great start, share closes with gains of 47%

Sudar Garments listed on the BSE and NSE on Friday. The company had launched its IPO between the 21st and 24th of February. The issue was for 90.77 lac shares and the price band was Rs 72-77. The issue was subscribed 1.55 times. The share listed at Rs 74 on the BSE and Rs 80.05 on the NSE. The high was Rs 117.70 on the BSE and Rs 117.35 on the NSE respectively, while the lows were the open on the BSE and the NSE.

Exchange Open High Low Close Net Change % gain Wt Avg Volume Delivery Del % age
BSE 74.00 117.70 74.00 113.10 36.10 46.88 101.31 34312272 3671940 10.70
NSE 80.05 117.35 80.05 113.10 36.10 46.88 101.59 40407612 3053968 7.56
Total 74719884 6725908 9.00

The share was on an upward trend throughout the day and the share rose from Rs 75 to Rs 117 before closing at Rs 113.10. In terms of trading volume the same was 747.19 lac shares which was 8.22 times the IPO size of 90.88 lac shares. The weighted average of the day’s trade was Rs 101.31 on the BSE and Rs 101.59 on the NSE.

The share closed at Rs 113.10 which was a gain of Rs 36.10 on the issue price of Rs 77. In percentage terms the gain was a healthy 46.88%. The delivery volume was 67.25 lakh shares which was 9% of the traded volume but a significant 74% of the IPO size. The share has had a good debut but very clearly the company has a long way to go in delivering on the performance and expectation from the stock. The price performance on day one would put more pressure and also increase the expectations in terms of delivering good results.

It would be interesting to see how the share performs over the next week.

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Performance of Newly Listed Shares 11th March 2011

March 12th, 2011 Comments Off on Performance of Newly Listed Shares 11th March 2011
Name Date of listing Issue Price closing  price closing price % gain loss change over
11th Mar 4th Mar over week lssue price
Omkar Speciality Chemicals 10th February 98.00 30.90 33.15 -6.79 -68.47
Acropetal Technologies 10th March 90 101.35 N A 12.61 12.61
Sudar Garments 11th March 77.00 113.10 N A 46.88 46.88
Fineotex Chemicals 11th March 72.00 140.90 N A 95.69 95.69
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Lovable Lingerie IPO Subscribed

March 12th, 2011 Comments Off on Lovable Lingerie IPO Subscribed

Lovable Lingerie Limited which had tapped the capital markets with its IPO in a price band of Rs 195-205 was oversubscribed very handsomely. The issue had opened on Tuesday the 8th of March and closed on Thursday the 10th of March for QIB’s and yesterday the 11th of March for non QIB’s. Anchor investors were earlier allotted 6,82,500 shares at the top end of the band. The balance size of the issue was 38,67,500 equity shares. The issue would raise Rs 79.38 crs at the top end of the price band. The issue received excellent response from all quarters and was oversubscribed 35.21 times.

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

Category Shares Offered Shares Subscribed Times
QIB 1592500 34821210 21.87
NII 682500 68162130 99.87
Retail 1592500 33186540 20.84
Overall 3867500 23834700 35.21

The oversubscription in the QIB category would put pressure on the leveraged investor. If one were to assume an interest rate of 15% for 9 days, it would cost Rs 0.758 per time. The issue is oversubscribed 99.87 times or almost 100 times, which means that the cost of a leveraged investor in the HNI category would be Rs 75.80. The current grey market premium is around Rs 58 which means at this point the leveraged investor is a loser. Going forward we would see some withdrawals from the issue and for even a breakeven the grey market premium would have to rise.

It would be interesting to see how this share fares post listing and in the coming quarters.

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