Ravikumar Distilleries Limited listed on the BSE and NSE yesterday. The share listed at Rs 64 on the BSE and at Rs 72 on the NSE. The high was Rs 90.30 on the BSE and Rs 91 on the NSE. The open of Rs 64 on the BSE and Rs 72 on the NSE were the lows of the day. The share closed at Rs 80.05 on both exchanges with a gain of Rs 16.05 or 25.08%.

The traded volumes were huge and at 1173 lakhs were a staggering 10.2 times of the IPO size of 115 lakh shares. The delivery volume was 88.48 lakh shares which was 7.54% of the traded volume and 76.93% of the IPO size. The major objective of raising the money from the IPO was achieved when the issue was subscribed and the second objective of distributing the stock to gullible investors is currently on. The weighted average of the day’s trade was Rs 84.25 on the BSE and Rs 84.41 on the NSE respectively. The share held itself well throughout the day and there was only one round of selling pressure after 3 pm which saw the share cracking from Rs 86 to Rs 78 as is visible from the chart appended below.

The share closed with a net gain of Rs 16 or 25%. The stock has been almost distributed and the objective of the people involved in the exercise achieved. The simple principle by which this game of distribution is achieved is huge volume and the game of passing the parcel. When the music stops, the holder of the parcel is left with the parcel which in this case is the share which has already lost its value.

In all fairness one must admit that the share has managed to stay afloat on day one and hold itself creditably. The fundamentals of the issue are weak as was mentioned in the issue analysis but as the market says, “PRICE IS KING”. Ravikumar Distilleries Limited had a successful debut.