It was an interesting week which went by. On the primary market front, Prakash Steelage Limited completed its IPO and was subscribed 4.53 times. Amongst the newly listed shares it was a mixed bag with Hyderabad based packaging company gaining 6.48% to close at Rs 180.65 and Hindustan Media Ventures Limited gaining 3% to close at Rs 185.05. Technofab Engineering lost 4.6% for the week to close at Rs 271.80 while Ahmedabad based Aster Silicates lost a whopping 18.46% to close at Rs 80.6. This share has been controversial since the time of the IPO and had made a high of Rs 255.95 on the 3rd day of listing on 30th of July. That week the share closed at Rs 190.25 and the following week the share closed at Rs 98.85.
The shares issued in the FPO of Engineers India were also listed in the week gone by and they did very well for themselves. Readers would recall that the shares were issued at Rs 290 with a discount of 5% for retail investors. The share closed at Rs 332.50 on Friday which was lower by Rs 7.50 compared to the previous week’s close. If one were to calculate the gain of a retail investor who applied for the maximum of 340 shares and was allotted 118/119 shares, assuming an average price of Rs 330, the gain would be Rs 6431 or 6.52% in just about 12 days. This return is simply fabulous and this would help in reviving retail interest in the subsequent Divestment issues from the government of India.
Coming to the week ahead, Monday would see the listing of the much hyped and highly controversial SKS Microfinance issue. The company had issued shares in a price band of Rs 850 to Rs 985 and allotted shares at the upper price band of Rs 985, with a discount of Rs 50 to retail investors. The issue was well received and was subscribed overall about 13.69 times. The company had almost 1.8 lakh applications in the retail category and was subscribed 2.76 times.
Wednesday the 18th of August would see the listing of Bajaj Corp Limited which has ‘Bajaj Almond Hair Oil’ as its flagship product. This company had issued shares in a price band of Rs 630-660 and was subscribed 19.29 times. The retail portion was subscribed 6.62 times and retail applicants applying for the maximum of 150 shares have been allotted 23 shares.
The secondary markets continue their volatility game. Markets were up on Monday and Friday and down on Tuesday and Wednesday with Thursday being a flat day. On a net basis the BSESENSEX saw a weekly change of a mere 24 points or 0.13%. The NIFTY saw a gain of 12.85 points or 0.24%. The markets are making a serious attempt to break out from the present levels and this week could see this happening or a major failure taking place. Everything seems to be in place for a sharp upward move with good monsoons all over the country and at times one feeling that the intensity of rainfall has increased and is leading to sudden and heavy outbursts.
The week has everything in place for enough of action and clearly could be a trend setter for time to come.
