| Biocon’s Shaw: Richie Rich, all in a day
Mumbai, April 7: Biocon and Power Trading Corporation (PTC) today opened their innings on bourses with blazing scores, raising the spirits of companies that are waiting to unleash a public-offer blizzard.
Both companies were at the top of the stock charts today; PTC saw the heaviest volumes and Biocon, the highest turnover on the Bombay Stock Exchange (BSE).
Power Trading toppled traditional heavyweights like Reliance Industries, Infosys Technologies and State Bank in terms of turnover and number of shares traded.
Kiran Mazumdar Shaw, the main promoter of Biocon, became the country’s wealthiest woman as her 40 per cent shareholding in the company she founded pitch-forked her into the club of richest Indian entrepreneurs.
“It’s a first day-first show phenomenon,” said Ajit Sanghvi of MSS Securities, a leading institutional brokerage. “It’s a very positive show and indicates the revival of the primary markets from now,” Sanghvi said. Though he attributed the spectacular gains to the fact both shares represented quality issues, he does not expect them to occupy the top slots in trading for long.
The Biocon share was listed at Rs 435, a premium of 38 per cent to the issue price; it hit an intra-day high of Rs 507 and closed at Rs 484.35. Bids for the 100 per cent book-built issue were invited in a price-band of Rs 270-Rs 315 for shares with a face-value of Rs 5. The issue was oversubscribed 33 times and drew bids worth Rs 10,000 crore.
Shaw, who is also the managing director, pressed the button signalling the Biocon stock was up for trading. Joining her was husband and vice-chairman John Shaw.
Shares of Power Trading Corporation listed at Rs 32, a 100 per cent premium on its issue price of Rs 16. The scrip touched an intra-day high of Rs 46.35 and finally closed the day at Rs 44.65. PTC, promoted by state-owned majors like National Hydro-Electric Power, National Thermal Power Corporation, Power Finance Corporation and PowerGrid, is in the business of trading by purchasing energy from utilities that have a surplus of it to those who fall short.
Investors prefer debutantes like Power Trading and Biocon, instead of already-listed companies that return to the primary markets to raise fresh funds or whose promoters sell their stake, say market observers.
Many of these, like IBP, CMC, Dredging Corporation of India, did not see the kind of spark like PTC and Biocon. Even Patni Computers failed to improve its price after a dismal debut.
Lead managers expect the trickle in the primary markets to turn into a torrent as big ticket IPOs like Tata Consultancy hit the bourses. The tumult generated by the two listings today will encourage investors waiting on the fringe to step in. There are predictions that the best for the primary market, dead not too long ago, is coming.
ICICI Bank issue
The ICICI Bank offer was over-subscribed more than four times at the close of the issue today. The largest offering by a private sector entity in recent times attracted bids for 48.88 crore shares against 11.96 crore up for grabs.