Standard Chartered PLC IDR Issue

May 16th, 2010 Comments Off on Standard Chartered PLC IDR Issue

Standard Chartered PLC is to open its IDR issue between the 25th of May 2010 and 28th of May. The issue is for a total of 24 cr IDR’s. This is the first offering of IDR in the country. Each IDR will form one tenth portion of a share. Effectively what this means is that 10 IDR’s will equal one share.

This would be the third listing for Standard Chartered PLC after London and Hong Kong. The company is offering a 5% discount to retail share holders. The stock closed at a price of GBP 16.22 on the London Stock exchange. The 52 week high low for the stock is 18.48 and 11.15 pounds respectively.

More on this offering during the course of the week as there is plenty of time to analyse the issue. Secondly the pricing of this issue would be informed by way of advertisement in the newspapers of Monday the 24th of May, which is one day before the issue opens. This means that the issue would be priced considering the closing price of Standard Chartered on the London Stock Exchange as of Friday the 21st of May 2010.   

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Performance of Newly Listed Shares 14th May 2010

May 15th, 2010 Comments Off on Performance of Newly Listed Shares 14th May 2010

Name Date of listing Issue Price Closing Price Closing Price % Gain Loss  Change Over
14th May 7th May over week  lssue price
Infrasoft Technologies 12th April 145.00 118.30 122.20 -3.19 -18.41
Goenka Diamonds and Jewels 16th April 135.00 99.35 103.00 -3.54 -26.41
Talwalkar Better Value 10th May 128.00 174.40 N A 36.25 36.25
Nitesh Estates 13th May 54.00 45.60 N A -15.56 -15.56
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Nitesh Estates Listing day one: Quiet sedate start.

May 14th, 2010 Comments Off on Nitesh Estates Listing day one: Quiet sedate start.

Share under pressure

Nitesh Estates Limited which had tapped the IPO market between the 23rd and 27th April listed yesterday. The company had issued 7.5 cr shares at a price of Rs 54. The share had a quiet start. The real estate sector is under pressure and probably this was the reason why the company was unable to garner overwhelming response even though it roped in marquee Anchor Investors. Some of the names included Nomura, HDFC, HSBC and SBI.

Exchange Open High Low  Close Net Change % gain Wt Avg Volume Delivery Del % age
BSE 50.00 55.00 48.05 50.95 -3.05 -5.65 51.38 15396279 1078879 7.01
NSE 54.00 58.00 48.40 51.40 -2.60 -4.81 51.46 22625458 2328848 10.29
Total 38021737 3407727 8.96

The company had a listing ceremony at the BSE and the share opened at Rs 50 on the BSE and Rs 54 on the NSE. The share made a high of Rs 55 on the BSE and Rs 58 on the NSE respectively. The lows were Rs 48.05 and Rs 48.40 respectively. The traded volumes were 3.80 cr shares or roughly a little over 50% of the IPO size. The delivery volume was 34.07 lakh or 8.96% of the traded volume. If one were to compare this figure with the IPO size it is a mere 4.54% and this is the worrisome figure. The share which was issued at Rs 54 lost about 5.61% and 4.85% on the BSE and NSE. This is not a big loss but there has been virtually no delivery accompanying the fall. In case the share slips further and is accompanied by volume the fall can be bigger, and it could really hurt the investor.

The day ended with the share down about 5%, trading volume of roughly 50% of the issue size and a delivery percentage of roughly 4.54% of the issue size of 7.5 cr shares. The stock is under pressure and is likely to weaken further. The extent of fall cannot be forecasted as of today but it would be in the interest of investors looking at the stock to wait for some time before taking a call on the stock.

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