Late selling causes stock to close 11% down
CEBBCO the manufacturer of commercial bodies for trucks listed on the BSE and NSE. The listing price at the BSE was Rs 122.80 and Rs 119 on the NSE. The high was Rs 144.80 on the BSE and Rs 142.55 on the NSE. The low recorded on the BSE was Rs 106.30 on the BSE and Rs 106.35 on the NSE respectively. The share closed with a loss of Rs 14.75 or 11.61% at Rs 112.25 on the BSE. The close on the NSE was 112.90, a loss of Rs 14.10 or 11.10%.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 122.80 | 144.80 | 106.30 | 112.25 | -14.75 | -11.61 | 120.60 | 11458900 | 1089166 | 9.50 |
| NSE | 119.00 | 142.55 | 106.35 | 112.90 | -14.10 | -11.10 | 120.28 | 16224090 | 2034011 | 12.54 |
| Total | 27682990 | 3123177 | 11.28 |
The combined traded volumes were healthy at 276.83 lakh shares which is 2.04 times the IPO size of 135.75 lakh shares. Readers would recall that CEBBCO had issued shares worth Rs 153 crs in a price band of Rs 125-127 and there was an offer for sale of 15.28 lakh shares as well. The issue had received poor response from HNI’s and Retail investors and remained undersubscribed in these categories. It was the QIB portion which saw the issue sail through.
The delivery volume was 31.23 lakh shares which was 11.28% of the trade quantity and 23% of the IPO size. Surprisingly no Institutional turnover or trading has been reported in the scrip on either of the exchange.
The share closed with double digit losses and the record books would say that one more IPO lost ground on listing day. The company at the time of its IPO had given its financials as of 31st March 2010 and it would be interesting to see how it has fared for the half year ended September 2010. The order book of the company as on 15th July was Rs 623 crs and the same had to be executed in the financial year ending March 2011. If the company is able to deliver 80% plus of this order book the turnover would have more than trebled compared to the Rs 182.86 crs of March 2010.
In conclusion good listing but poor finish for the day. I continue to remain bullish and believe that this company should deliver.
