Share under pressure but recovers to close 4.5% below issue price
Orient Green Power Limited listed on the BSE and NSE on Friday the 8th of October. The share price was extremely volatile. The share listed at Rs 45.70 on the BSE and NSE. The high was 46.60 on the BSE and Rs 46.65 on the NSE and the low was Rs 38.30 on the BSE and Rs 38.10 on the NSE. The difference between the high and low is huge and considering the issue price is fairly high. The difference is Rs 8.30 which is almost 18% of the issue price.
| Exchange | Open | High | Low | Close | Net Change | % gain | Wt Avg | Volume | Delivery | Del % age |
| BSE | 45.70 | 46.60 | 38.30 | 44.90 | -2.10 | -4.47 | 43.55 | 25411202 | 4139077 | 16.29 |
| NSE | 45.70 | 46.65 | 38.10 | 44.70 | -2.30 | -4.89 | 43.44 | 39364686 | 10777884 | 27.38 |
| Total | 64775888 | 14916961 | 23.03 |
The company had launched its IPO to raise Rs 900 crs in a price band of Rs 47-55 and the response to the issue was not very encouraging. The issue was priced at Rs 47 which was the lower end of the price band and the issue was fully subscribed.
On day one we saw Reliance Life Insurance Company Limited buy 33.05 lakh shares of the company and at the same time we also saw Goldman Sachs sell 34,41,984 shares of Orient Green. Apart from these two deals there was no other institutional deal which was reported.
The total traded volume was 647.76 lakh shares which as a percentage of the IPO size was 33.8% of the 19.15 cr shares which were issued. The delivery volume was 149.17 lakh shares which was 23.03% of the traded volume and a mere 7.79% of the IPO size. This kind of delivery volume of IPO size is unheard of and indicates that institutional investors who have subscribed to this issue have a longer term view on the share or are quite confident that the price would improve in the near term. In any case with retail investors not participating in large numbers and Green Energy being the need of the hour, it would be institutional investors who would drive this stock.
Let us see whether once the price moves up institutional activity is stepped up or not and whether there is buying or selling that happens.
