Shekhawati Poly-yarn Limited which listed yesterday and closed at Rs 47.50 with a gain of 58.33% created history today. The turnover yesterday was 22.44 cr shares or a staggering 18.7 times its IPO size of 1.2 cr shares. Today the turnover failed to touch even the 1 lac mark as the stock opened at the lower circuit of Rs 38.05 on the BSE and Rs 38 on the NSE. The share remained locked at the lower circuit throughout the day and there were no trades at any other price. The total volume on the BSE was 49,420 shares and 46,884 shares on the NSE making the combined total a mere 96,304 shares.
The indication of the weak open was given in the article which spoke about the end of day delivery and pointed out the fact that the weighted close for the day was Rs 47.50 while the last trade was around Rs 32. One should not get surprised if we have another down circuit in this share tomorrow as well.
This share is a classic case of what can happen to investors in a ‘managed’ issue. The share gives you a zero chance of exit once you are trapped. This issue was oversubscribed just under 7 times and had a great debut if one were to exclude the last half hour of trade.
One hopes that investors learn from this experience as there are enough promoters and companies willing to take investors on a wild ride.
