The Hindu Business Line : Uniply Industries sees huge volumes on Day 1

THE listing of Uniply Industries shares today made a record of a different nature on the BSE as trading volume was almost five times of the issue size.

The listing was also at a premium to the offer price but it was not to the extent as seen in other IPOs. The stock closed at Rs 29.95 against the issue price of Rs 24, a premium of 20 per cent.

Shares of Uniply are not listed on the NSE.

But the biggest surprise among the market players was the huge volumes recorded on the first day of trading. A total of 2.4 crore shares were traded that was almost five times the issue size of 50 lakh shares and double the paid-up capital of Rs 12.4 crore comprising 1.24 crore shares of Rs 10 each.

Of the total shares traded, 27.38 lakh shares were for delivery, which is more than 50 per cent of the shares offered in the IPO.

This is for the first time in an IPO that such a large number of shares have been traded on the first day of listing.

According to brokers, there was heavy trading by day-traders and most of the investors who got allotment in the IPO exited the stock. "I believe most of the high net worth investors and retail investors have exited today. If some big investors have bought the shares, then there could be a spike in the stock price in the days to come," a dealer with a domestic broking firm said.

An official of another domestic broking firm said the company is likely to announce some tie-up with a Malaysian company and this had led to the huge trading volumes.

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Uniply Industries sees huge volumes on Day 1