Godrej Properties Limited listed yesterday with a bang. This was the second of the back to back issues which had opened for subscription between the 9th and 11th of December. The issue was in a price band of Rs 490-530 and was priced at the lower end of the band at Rs 490.

The share listed at Rs 510 on the BSE and Rs 511 on the NSE respectively. The highs were Rs 586.70 on the BSE and Rs 586.80 on the NSE. The lows were Rs 500 on the BSE and Rs 502.15 on the NSE. 

The share was well received and the listing day went off well. The total traded volume was almost 1.4 cr shares or almost 1.5 times the size of the IPO.  Delivery volume of 18.66 lakhs was 13.36% of the traded volume and roughly 19.85% of the shares offered in the IPO. The listing has gone off well and investors have been well rewarded on day one itself. Indications from traded volume, weighted average and trading pattern indicate that the stock is likely to perform even better today.

Great Start to the share – Trading about 14% higher

Godrej Properties Limited, the second of the three back to back issues and had a great listing. The share listed at Rs 510 on the BSE and Rs 511 on the NSE respectively. The lows on the two exchanges were Rs 500 on the BSE and Rs 502.15 on the NSE respectively. The highs were Rs 586.70 and Rs 586.80 respectively. Trading has been very brisk and more than half the issued shares of 94 lakhs have been traded in the first thirty five minutes of trade. The total traded volume is 47.9 lakhs in 35 minutes.

Readers would recall that Godrej Properties had launched its issue in a price band of Rs 490-530 during the 9th to 11th of December 2009. The issue did not receive adequate response from retail investors but was oversubscribed by QIB’s. The issue was priced at Rs 490, the lower price band. As of the time of writing the share is holding well and is trading about 14% higher than the issue price.

It would be interesting to see where the share closes at the end of the day. The share needs to close at or higher than Rs 540 at the end of the day for it to be a good listing and the share would then have weathered the opening onslaught that is normally witnessed on listing day.

It was the first day of trading for the calendar year 2010. It was the first day of trading with earlier timings with trading starting at 9 am. It was the first listing of an issue in the New Year. It was a listing of a power generating company.

JSW Energy Limited listed at the BSE on Monday the 4th of January 2010. The company had issued 26.4 cr shares at Rs 100 to investors, with a discount of Rs 5 to retail investors. The company had also allotted 4.22 cr shares to anchor investors at a price of Rs 110. Through the issue the company had raised Rs 2700 crs.

The share listed at Rs 102 on the BSE and Rs 106 on the NSE. In the first half hour of trade the highs of 106.40 on the BSE and Rs 106.35 were made. Thereafter the share was under pressure throughout the day. The lows were Rs 99.90 on the BSE and Rs 100 on the NSE.

Retail participation in the share at IPO time was fairly muted and therefore selling pressure on the share should also not have been there. Yet of the total 11.15 cr shares traded, 4.23 cr shares or 37.93% of the traded volume was marked for delivery. This indicates a fairly high delivery percentage and particularly where investor interest was lacking this should not have happened. One other indication of weakness is the weighted average of the day’s trading which was at Rs 101.97 on the BSE while the close was at Rs 100.75. The last trade was at Rs 100.15. The gap between the average traded price and the traded price shows the selling pressure. Similarly on the NSE the weighted average was Rs 101.87 and the last traded price was Rs 100.20.

Very clearly the share is under pressure and will have to stage a recovery to survive slipping into negative territory. For the records, Adani Power had also similarly survived day one but went on to recover from there for the next few days before slipping.