Markets
BSE See NSE See 39,046.34
85.55 (0.22%)
collapse Related Readings collapse

Listing Lessons

| 1/10/2013 9:00 PM Thursday

With the secondary markets witnessing an up-move (up 25 per cent in CY12), the primary market, which was quite dormant for some time, has also come to life again. As the leading equity indices moved upwards, the number of companies tapping the primary market has gone up steadily. This is what normally happens when the times are good.

There was a time when investors made a killing by investing in IPOs which came in floods to take the advantage of a rising market. However, the scenario has changed, and over the years, the returns on IPOs have moderated considerably. In some cases, investors have seen their wealth get eroded significantly after having invested in IPOs. As a result, the frenzy over investing in IPOs has subsided considerably.

Recently, three major companies, viz. PC Jeweller, Bharti Infratel and CARE raised money through the IPO route and got listed on the bourses. Here is what they have been doing on the bourses after being listed.

PC Jeweller

PC Jeweller tapped the primary market to raise Rs 609.30 crore in the month of December 2012. The price band at which the company raised money was between Rs 125-135 per share. The issue was priced well, with something left on the table for investors. It got oversubscribed by 6.86x and the final issue price was fixed at Rs 135 per share. However, one has to remember that the issue got oversubscribed only on the last day – a trend which is being seen for quite some time now. Another noteworthy factor is it was the demand from Qualified Institutional Buyers (QIBs) and Non Institutional Investors (NIIs) that helped the issue to go through well.

ParticularsBSENSE
Issue Price 135 135
Open 135.5 137
Low 135.5 137
High 154.75 154.7
Last trade 149 149.2
Volume 28612722 64704244

On December 27, 2012, the scrip got listed at a premium and closed the day at Rs 149, providing gains of 10.37 per cent on the listing day. The scrip is now trading at Rs 178 and is still providing returns of more than 32 per cent on the subscription rates.

In our analysis (posted on www.DSIJ.in on December 5, 2012), we had recommended a ‘buy’ on the IPO from a long-term perspective. We stand by our stance and recommend that investors with a longer horizon can continue to hold the scrip. Though there was some news of the government levying additional duties on gold imports, this company will hardly get impacted as it has already imported gold and will get a price benefit according to the prevailing rates. Hence, holding the scrip seems to be a prudent strategy.

Issue Subscription QIBsNIISRIISEmployee Reservations Total
Shares offered / Reserved 15671250 6716250 15671250 358500 38417250
Day 1 Dec 10 0 0.11 0.09 0 0.06
Day 2 Dec 11 0.57 0.28 0.4 0.16 0.44
Day 3 Dce 12 7.33 18.12 1.68 0.96 6.85

 

Find More Articles on: DSIJ Magazine, Special Report, Product, Large Cap, Mid Cap, IPO, Know your IPO

«« First « Previous |1 2 | Last ››
news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

MIDHANI and HAL partner to develop bio implants

Geyatee Deshpande / Article rating: 5.0

Mishra Dhatu Nigam Limited (MIDHANI) signs an MoU with Hindustan Antibiotics Limited (HAL). This MoU will provide synergy for quality manufacturing of MIDHANI’s Bio-medical Implants and get access to the pan-India distribution of HAL. This partnership is aimed to gain advantage from the strengths of both the companies and benefit users of Bio-medical products in India.

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.