Closes with gains of 24%

MOIL listed on the BSE and NSE yesterday. The opening price at the BSE was Rs 551 while on the NSE it was Rs 565. The high was Rs 591.05 on the BSE and Rs 590 on the NSE. These highs were made in the first few minutes of trade itself. The lows were Rs 458.50 on the BSE and Rs 456.65 and were made in the last 15 minutes of trade for the day, signifying panic selling by investors seeing a huge sell off from Rs 590 to below Rs 460.

The total traded volume on the two exchanges combined was 967 lacs which was 2.88 times the IPO size of 3.36 crs shares. The total delivery volume was 1.54 cr shares which was 15.93% of the traded volume but 45.88% of the IPO size.

The issue was very well subscribed and as a result the allotment was very poor. This poor allotment has resulted in no large selling by any one and therefore there is no selling detail on the institutional side. Surprisingly there is no buying information available on the exchanges also and it is a bit confusing and intriguing to see that more than 1.5 cr shares have been sold and there is not a name available. This fact should also be looked at in relation to the price which was on a virtual one way street, and falling almost throughout the day or at best remaining steady.

The weighted average of the day’s trade was Rs 514-515 which is a gain of Rs 140 or 37.33%. This is a good gain and if one were to look at it from the retail perspective and consider his retail discount of 5% or Rs 18.75, his total gain is Rs 158.75 and on the 17 shares he was allotted is Rs 2700. A decent return but nowhere what one got from Coal India. The selling pressure witnessed was apparently led by the HNI category whose leveraged cost was between Rs 175-190.

The selling pressure seen in the last hour and the fact that delivery percentage is just about 46% indicates that there could be more selling in the short term. The share looks vulnerable and buying at current levels is not recommended.