Sensex Trades In Red; Metal Stocks Witness Selling

After opening the day in a red note, the Indian share markets have continued the downward spiral and are currently trading in the negative territory. All sectoral indices are trading negative, with stocks in the metal sector and the power sector witnessing maximum selling pressure.

The BSE Sensex is trading down 165 points (down 0.5%) and the NSE Nifty is trading down 48 points (down 0.5%). Meanwhile, the BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading down by 0.7%. The rupee is trading at 64.38 to the US$.

In news from stocks in the IPO space. The initial public offer (IPO) of hospital chain, Shalby Ltd is in focus today. Rs 4.8 billion IPO by hospital operator Shalby kicked off today, a day after the company allotted 6 million shares to its anchor investors including Goldman Sachs, Citigroup and Axis Mutual Fund for Rs 1.5 billion.

At the time of writing, Shalby Ltd’s IPO was subscribed 3% so far on the first day of the share sale. As of 12.30pm, the IPO received bids for 470,460 shares against the total issue size of 14,521,686 shares, according to NSE data.

Shalby, which runs a multi-specialty hospital chain, has set a price band of Rs 245-248 per share for the IPO and aims to raise Rs 5 billion.

Shalby’s IPO opens today and will close on 7 December. Should you apply for the IPO of Shalby Ltd? We have released our IPO note on Shalby. You can access the same in our IPO section.

IPO Subscription Times (2017)

One space which tests the investor’s contrarian philosophy is the IPO space. The demand for IPO’s has reached sky-high levels. Avenue Supermarts was the first company this year to cross the 100-time subscription mark swiftly followed by CDSL and Dixon technologies lately, with MAS Financial Services being the newest entrant to the list.

The market euphoria is something similar to what was seen in 2007-08. When everyone around you is clamoring to get a piece of the IPO pie, it makes sitting tight difficult. And, why should you sit tight when stocks like Avenue Supermart lets you pocket a cool 100% gain from day 1 of the listing?