Emmbi Polyarns Listing Morning: Share cracks after opening positive

February 24th, 2010 1 Comment

Emmbi Polyarns Limited listed on the BSE and NSE today. The share opened on the BSE at Rs 45.50 and made a high of Rs 48.35. On the NSE the open was Rs 46 and the high Rs 48.30. The share was trading in positive territory for about an hour, the share simply crashed and lost almost 1/3rd its value from Rs 48 to Rs 30. I have not seen something like this in a very long time and was completely taken aback at what happened. Very clearly over pricing is the cause and the concerns that investors have because of such pricing will haunt investors for a long time.

Exchange Open High Low  Close Net Change % gain Volume Wt Avg
BSE 45.50 48.35 26.50 30.45 -14.55 -32.33 46460399 42.01
NSE 46.00 48.30 26.65 30.50 -14.50 -32.22 44115589 41.33
Total 90575988

Emmbi Polyarns had issued 95 lakh shares in a price band of Rs 40-45. The issue was subscribed 1.2 times and was priced at Rs 45. The issue was extremely expensive and was not recommended for subscription by this analyst. The issue has seen mind boggling volumes today. In the first two hours of trade 9.05 cr shares or 9.5 times the IPO issue have been traded. It is huge by all standards.

The share crashing is indeed intriguing and defies logic. The weighted average is falling but at the time of writing was still at Rs 41.50. Delivery details at the end of the day would be important to watch but it appears that the delivery percentage is likely to be higher than the record 81% which was seen in the case of Aqua Logistics on day one.
More of Emmbi Polyarns tomorrow.

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DB Realty Listing morning: Listing is a disaster

February 24th, 2010 Comments Off on DB Realty Listing morning: Listing is a disaster

Listing ceremony

DB Realty Limited listed its shares at a colourful listing ceremony at the BSE today. The IPO was in a price band of Rs 468-486 and was subscribed 2.95 times. The issue was for Rs 1500 crs. The retail participation was quite poor and just about one third of the retail portion was subscribed. The issue price discovered at the end of the issue was the floor price and was fixed at Rs 468.

The share opened for trading at Rs 430 on the BSE and made a high of Rs 458.80 and a low of Rs 415.20. On the NSE the share opened at Rs 452.10, made a high of Rs 453.90, a low of Rs 414.35. The share has been under pressure right since the morning.

Exchange Open High Low  Close Net Change % gain Volume Wt Avg
BSE 430.00 458.80 415.20 421.10 -46.90 -10.02 3511077 423.46
NSE 452.10 453.90 414.35 421.10 -46.90 -10.02 4552499 422.38
Total 8063576

The volume in the first seventy five minutes of trade has been reasonable. A total of 80.63 lakhs or roughly 25% of the IPO size of 3.20 cr shares have been traded. Very clearly on a day when markets were expected to be negative and the broad market virtually flat can certainly be considered positive for the stock. It appears that this has not helped the stock and the over-pricing of the issue has led to a 10% fall first thing in the morning on listing day.

Let us hope that the QIB’s who had subscribed to the issue almost five times and did not receive full allotment come forward to buy from the secondary market when the share is available at 90% of the value. Clearly the first hour has gone against the company and it is to be seen how the share fares during the remaining part of trade.
Share looks weak and under extreme pressure.

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Aqua Logistics Day One

February 24th, 2010 1 Comment

Aqua Logistics Limited listed yesterday on the BSE. Shares were allotted at a price of Rs 220. The company had given a discount of Rs 5 to retail investors. The share saw brisk trading throughout the day and to the credit of the company did not trade in negative territory at any point during the day. The share listed on the BSE at Rs 219.40 and made a high of Rs 245.80.The low was the open itself. On the NSE the stock opened at Rs 225, made a low of Rs 223.75 and the high of Rs 246.

Exchange Open High Low  Close Net Change % gain Wt Avg Volume Delivery Del % age
BSE 219.40 245.80 219.40 244.30 24.30 11.05 237.27 19063341 2347775 12.32
NSE 225.00 246.00 223.75 244.60 24.60 11.18 237.53 27008071 3280196 12.15
Total 46071412 5627971 12.22

Aqua Logistics is a 3PL or third party logistics player. The IPO did not subscribe at the first attempt and the issue had to be extended and the price band lowered. The issue did ‘manage’ the requisite subscription and was oversubscribed. This author had written about the business model of this company and had advised investors to stay away on extremely poor fundamentals.

The share saw a total trading of 4.60 cr shares which is roughly 6.66 times the IPO size. Delivery as a percentage of trading was low at 12.22% but when considered as a percentage of the IPO size is extremely high at 81.37%. This delivery percentage is probably a record in recent times and is marginally higher than the figure of Syncom Healthcare which listed recently.

Looking at the trading pattern and the delivery figures it appears imminent that the share would go up within the next few days but as I mentioned a share with poor fundamentals cannot become good simply because of the price. I would also agree that if the price falls substantially than fundamentals change but we would look at that when the price comes to levels of below 150.

Avoid the share and do not get lured looking at the price and volume- it is part of the game.    

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