When things are not in your favour nothing works. After a long time the government got the pricing right and that was reflected in the oversubscription of 6.64 overall and retail of 3.11 times. The share listed ok but the weakness in the global markets, fear about the Euro, the concern of recovery in overseas economies all lead to general weakness and SJVN just could not hold on. Even the fact that our markets gave a dead cat bounce after the sharp fall on the previous day was just not enough. The only consolation is the fact that the share is trading higher than the net price of Rs 24.70 which retail investors were allocated at.

The share listed on the NSE and BSE at Rs 27.10 and Rs 28 respectively. These prices were also the highs for the day. Thereafter the share slid continuously and made its lows of Rs 24 on the NSE and Rs 24.15 on the BSE. The share recovered from these levels and traded above par around Rs 26.20-26.30, but sheer selling pressure saw the share giving up and closing in negative territory.

The traded volumes were brisk in terms of number of shares and 20.72 cr shares were traded. In terms of comparison of trading with IPO size it was just about half the IPO size of 41.5 cr shares. The delivery volume was 656.70 lakhs, 31.69% of the traded volume and 15.82% of the IPO size.

Fundamentals of the company are good but in a falling market nothing or atleast logic does not work. I believe one would have to be patient and allow the share and to some extent the market stabilise.

SJVN Limited the hydro power generating company which is co-promoted by the Government of India and the state of Himachal Pradesh listed today at the NSE and BSE. The company had come out with an offer for sale of 41.5 cr shares in a price band of Rs 23-26, with a discount of 5% to retail investors and employees. The issue had received excellent response and was oversubscribed 6.64 times. The interesting part of this subscription was the retail portion getting subscribed 3.11 times showing the confidence that the retail had in the price band fixed. The issue price was fixed at the upper price band of Rs 26 and allotment to retail investors was at Rs 24.70 after factoring in the 5% discount.

The share opened at Rs 28 on the BSE and at Rs 27.10 on the NSE respectively. The opening levels itself were the highs on both the exchanges. The lows were Rs 24.15 on the BSE and Rs 24 on the NSE respectively. Trading volumes are very brisk and one must also consider the fact that the issue size itself was huge – 41.5 cr shares. In the first fifteen minutes of trade almost 2.2 cr shares have been traded.

The weighted average after the first half hour of trade indicates that the share is under pressure and is trading slightly higher than the net discounted price of retail investors which means that there is already a 5% discount in price. This is not a good sign and does not augur well for the issue. It clearly shows that the mood in the market place is becoming negative and this mood will affect investors’ appetite in future IPO’s as well.

The share is trading at around Rs 24.50-24.80 which is around a 5% loss to the issue price. Thirty minutes of trade have seen volumes of 3.3 cr shares or about 8% of the issue offering. Good volumes but clearly share is under pressure. The day panning out and delivery percentage will be important at end of day.