Share under selling pressure closes almost 14% lower
Ramky Infrastructure Limited was the third stock to list on Friday. The stock listed at the BSE at Rs 450 and on the NSE at Rs 471.55. The high on the BSE was Rs 460 while the opening price itself was the high on the NSE. The low was Rs 345.05 on the BSE and Rs 351.20 on the NSE respectively.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 450.00 | 460.00 | 345.05 | 387.35 | -62.65 | -13.92 | 395.28 | 6118425 | 513967 | 8.40 |
| NSE | 471.55 | 471.55 | 351.20 | 387.40 | -62.60 | -13.91 | 395.72 | 10247015 | 1737309 | 16.95 |
| Total | 16365440 | 2251276 | 13.76 |
What is surprising to note is that the high or low is not visible on the accompanying chart. The entire action seems to be over in the first minute or to be more precise in a few seconds of opening. What is not clear why would somebody who has been allotted shares at Rs 450 or even a trader want to sell shares of a newly listed company which has issued shares at Rs 450, a hundred rupees or almost 22% below issue price in a minute after opening? Does this person or group of persons know something that the rest of the market does not know? It is indeed surprising and strange.
The traded volume on the stock was 163.65 lakh shares which was 1.38 times the issued capital of 117.78 lakh shares. Readers would recall that the company had issued shares in a price band of Rs 405-468. The issue size was Rs 530 crs and comprised of a fresh issue of Rs 350 crs and an offer for sale of Rs 180 crs. The issue was subscribed 2.89 times with QIB portion being subscribed 4.52 times. The HNI portion was subscribed 1.45 times and the retail portion just about subscribed at 0.99 times.
There was no institutional activity reported on the bourses either on the buy or sell side. There was one HNI trade on the buy side where Jai Vijay Resources Pvt Ltd bought 3.15 lakh shares at 397.49 on the NSE.
The weighted average of the trades was at Rs 395 and this weighted average was below the closing price of rs 387. This shows that the share was under pressure and a first day fall of about 14% is indeed baffling.
The next few days of trade would bring about more clarity on this issue and how the price would stabilise going forward. As far as the listing day goes this would be yet another stock where investors of all categories have lost money on listing day.
