The Hindu Business Line : Jubilant Foodworks lists at 66% premium to issue price

Jubilant Foodworks, whose initial public offering was subscribed 31 times, closed at a premium of 66 per cent to its issue price on listing on Monday.

The shares closed up at Rs 240.6 against its issue price of Rs 145 on the NSE. The shares opened at Rs 160, also the intra-day low; and touched a high of Rs 240.90.

On the BSE, the shares closed slightly lower at Rs 229. They opened at Rs 161.6 a piece touching a high of Rs 241.95 intra-day.

The price band for the issue had been Rs 135-145.

A total of 8.86 crore shares of Jubilant Foodworks were traded on both the BSE and NSE, making for a total turnover of Rs 1,826.6 crore.

Reliance Capital Trustee, SBI Mutual Fund, Arisaig India Fund, T Rowe Price and Capital Group A/C small cap world fund were among the buyers of Jubilant Foodworks' shares through bulk deals on Monday on the BSE and NSE.

The 2.2 crore shares issue of Jubilant Foodworks was subscribed 59.38 times by Qualified Institution Buyers; 51.81 times by non-institutional investors and 3.71 times by retail investors. The anchor investors who subscribed to the issue were Arisaig Partners, Blackrock, Canara Robeco MF, Capital World, Fidelity, Franklin Templeton, HSBC, Prudential, Reliance MF, SBI MF, T Rowe Price and Ward Ferry.

In 2010, six companies debuted on the stock exchanges. Although most of them listed with gains, the listing gains are as disparate as 2 per cent and 66 per cent. In contrast, the listings of 2009 made for either tepid shows on listing or debuted with declines.

No ‘dramatic' revival

Market-men said that there is steady gain in retail investor confidence, but they felt there would still not be a “dramatic” revival of the primary market this year.

Of the six companies that have listed this year, five are currently trading above their issue price. Only the shares of Godrej Properties were trading below issue price on Monday. This scrip closed at Rs 474, against its issue price of Rs 490.