A2Z Maintenance & Engineering Services Ltd….IPO had scraped through at Rs 400…helped by High Net Worth Applications…probably a back up plan….. as both the other segments QIBs and Retail were undersubscribed…..got a stressful Listing today…High/Low of Rs 398 +/Rs 318+ on BSE…did not even record the Issue Price at the Lower end of the Band of Rs 400….Interestingly Reliance Capital Group owns 37 lakh + shares as disclosed in the pre listing Shareholding at December 18,2010…Anchor Investors for @ Rs 148 crs at Rs 400/share…they’re down by Rs 27 crs today !
…..in the news for Rakesh Jhunjhunwala having made a huge bonanza in this Company…Invested Rs 20 crs for a 21% stake in May 2006 when it was a Private Company…Pre IPO he held 1.21 cr shares and offloaded @ 5 lakh shares in the IPO to get back the initial Rs 20 crs Invested…the rest is locked in for one year…he should have held 1.42 cr shares at an average cost of Rs 14/share,but after the first bonus of 11:1 on August 10,2007,he had 5698776 shares shares of which he sold 448776 shares at Rs 34.89 (this was his average cost of holding at that time) on August 20,2007 to 11 persons and got Rs 1.57 crs….Then in August/September 2009 he gifted 429550 shares to 13 persons before the last Bonus of 3:2 given on March 18,2010…thus his holding just prior to the IPO was 12051125 shares at a net Investment of Rs 18.43 crs giving an average cost of Rs 15.3/share…so he’s got his bonanza of Rs 380 crs gains in 4 and a half years….nearly all of it is notional as lock in applies for a year….assuming the Share Price even after a year remains at Rs 330 levels,the gains could be realised…that’s a CAGR of a superb @ 82%
…..but those who were allotted the Shares in the IPO at Rs 400 are down 18% already on the first day’s closing BSE price of Rs 328.90
…if you are one of these over 12000 stressed out A2Z IPO allottees maybe you ought to try out another A2Z Service !…..those A2Z Relaxing Services ! that have proliferated all over ..check out the classifieds in the top Papers in your town or city !…both are rips off…but one stresses and the other de-stresses !