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On a day when the benchmark indices: the Sensex and the Nifty tanked, there was an “outstanding” performer on Thursday in the form of newly-listed Inventure Growth & Securities Ltd.
On the day of its listing, the scrip logged in a volume of 5.87 crore shares on the NSE (8.39 times the IPO size of 70 lakh shares) and 4.7 crore shares on the BSE (6.72 times the IPO size).
It is interesting to note that more than 2.22 crore shares were traded on the NSE between 2:30 p.m. and 3:30 p.m. as the average traded price per share rose from Rs 98.35 to Rs 206.74 at close during that time.
At a time when equity broking business is facing rough weather, it is totally irrational that a newly listed brokerage could see such price and volume movements, said experts.
“The market is trading in an irrational manner and such movements must be investigated by the concerned authorities or else retail investors might burn their fingers,” said independent market expert Mr. Alok B Agarwal.
The scrip listed at Rs 117 a share on the NSE and touched a high of Rs 225 a share and a low of Rs 91.2 before closing the day at Rs 206.75. On the BSE the stock opened at Rs 109, hit a high of Rs 225 and a low of Rs 91.55 before ending the day at Rs207.95.
The issue was subscribed 4.58 times with HNI and retail investors subscribing by 9.49 and 8.66 times respectively while institutional subscription was only one-fourth.
“This has been the trend for all recent mid-cap and small-cap issues” said Mr Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities Ltd.
“Only those with the appetite to bear the volatility on both sides should buy into such stocks.”
The last IPO that listed on July 28, Bharatiya Global Infomedia, saw its stock price plummeting more than 60 per cent on the day of listing from Rs 81.9 a share to Rs 29.9 a share. “Neither will SEBI do anything, nor will the bourses. It's better we keep away from such issues,” said the head of research of another Indian broking firm.
raghavendrarao.k@thehindu.co.in
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