Mumbai-based fragrance and flavour maker, SH Kelkar & Company received an astounding response to its three-day IPO that ended on Friday even as sentiment in the secondary market was weak and benchmark indices ended in the red for the fifth straight session.

The R510-crore IPO was subscribed a little over 27 times as on 6.45pm and saw interest across all investor categories, stock exchange data showed.

The qualified institutional buyers (QIBs) category received nearly 26 times the bids. Institutional investors, both domestic and foreign-based, bid for 15.03 crore shares against 58.8 lakh shares reserved for the category, data showed. The non-institutional category comprising high net-worth individuals (HNIs) saw 88 times more shares applied for against 43.1 lakh shares reserved for them. HNIs bid for 37.62 crore shares.

The retail book received a positive response and received twice the bids, as opposed to under-subscription seen in seven out of 17 IPOs this year. Retail investors, whose investment should not exceed a total Rs 2 lakh as per Sebi rules, bid for 2.12 crore shares against 1.004 crore shares on offer.

Many domestic and foreign brokerages had recommended clients to subscribe to the issue, citing sustained growth momentum and attractive pricing. The company had set a price band of R173-180 per share.

Kotak Investment Banking and JM Financial are the financial advisors to the issue.

SH Kelkar had raised v150 crore on Tuesday after allotting shares to investors in a pre-IPO placement. List of anchor investors included T Rowe and Neuberger Berman, ICICI Prudential, L&T Mutual Fund and Small Cap World Fund.

The IPO consisted of a fresh issue of R210 crore, and an offer for sale worth Rs 298 crore (at the upper price band) by existing shareholders, including Blackstone Capital Partners and SH Kelkar’s non-executive director Prabha Ramesh Vaze.  In 2010, Blackstone had bought a 33% stake in the company for Rs 243 crore.

The company will use the proceeds of the issue for repayment of existing corporate debt, to infuse fresh funds into subsidiary company KV Arochem, and for general corporate purposes.

After falling over 11 per cent on Thursday, the share price of Just Dial slipped further over 6 per cent on Friday on the back of lower-than-expected Q2 results.

After falling over 11 per cent on Thursday, the share price of Just Dial slipped further over 6 per cent on Friday on the back of lower-than-expected Q2 results.

At 11.23 am, Just Dial shares were trading 6.59 per cent down at Rs 798.40. The scrip opened at Rs 857.50 and had touched a high and low of Rs 869.45 and Rs 791.05, respectively, in trade so far. Sensex was up 0.22 per cent at 26,897.16.

According to Nomura, Justdial reported 2Q results that were below our expectations on both revenues and margins but ahead on PAT, driven by higher other income.”
Just Dial registered a 47.03 per cent surge in its net profit at Rs 46.30 crore for the quarter ended September 30, on rise in income. The company earned a profit of Rs 31.49 crore in the year ago period. Total income from operations rose to Rs 171.27 crore in the July-September quarter of the current financial year from Rs 147.40 crore in the year ago period, the company said in a regulatory filing.

Nomura in a research note said, “2QFY16 revenues of Just Dial stood at Rs 171 crore, up 16 per cent year-on-year lower than our estimate of Rs 180 crore.”

Motilal Ostwal estimated around Rs 1,79.8 crore of revenue in the second quarter ended September 30, 2015.

Overall, since the beginning of the ongoing financial year, the share price of Just Dial plunged 35.67 per cent to Rs 854.75 on October 29. The scrip was at Rs 1,328.60 on April 1. The key benchmark index, BSE Sensex declined 5 per cent during the same period. At current market price, the scrip is trading at 37.95x trailing twelve months price-to-earnings ratio (P/E) against industry P/E of 31.48x, indicating over valuation of stocks.

From investment point of view brokerage houses are looking bullish on the further movement of Just Dial shares, Motilal Oswal in a research report said, “During the second quarter Just Dial launched Search Plus updated app, success of which we believe will be crucial to company’s evolution from ‘Search to Transactions’. The management is yet to unveil its advertising campaign (expected in 2HFY16) which in our view will be an important milestone in increasing its acceptance amongst users. We cut our EPS estimates by 4 per cent and 9 per cent 2015-16 and 2016-17, respectively, due to lower-than-expected growth/margin in base business. We maintained ‘Buy’ rating on Just Dial shares with target price of Rs 1,100.”

Japanese brokerage firm Nomura also maintained ‘buy’ rating on Just Dial shares with target price of Rs 1,800.

Glenmark Pharmaceuticals share price gained as much as 4.5 per cent in the morning trade on Friday after the company informed stock exchanges that Glenmark Pharmaceuticals Inc., USA has been granted tentative approval by the USFDA for its Lacosamide Tablets. (Express Photo)

Glenmark Pharmaceuticals share price gained as much as 4.5 per cent in the morning trade on Friday after the company informed stock exchanges that Glenmark Pharmaceuticals Inc., USA has been granted tentative approval by the United States Food & Drug Administration (USFDA) for its Lacosamide Tablets, 50 mg, 100 mg, 150 mg and 200 mg, the generic version of Vimpat Tablets, 50 mg, 100 mg, 150 mg and 200 mg of UCB, Inc.

At 10.18 am, Glenmark Pharmaceuticals shares were trading 3.90 per cent up at Rs 982.20. The scrip opened at Rs 970 and had touched a high and low of Rs 987.55 and Rs 970, respectively, in trade so far.

Glenmark will market this product upon receiving final approval of its Lacosamide Tablets, 50 mg, 100 mg, 150 mg and 200 mg ANDA. The patent listed in the Orange Book for Vimpat Tablets, 50 mg, 100 mg, 150 mg and 200 mg is scheduled to expire on March 17, 2022.

The Vimpat market achieved annual sales of approximately $691.0 million, according to IMS Health sales data for the 12 month period ending September 2015.

Glenmark’s current portfolio consists of 102 products authorised for distribution in the US marketplace and 64 ANDA’s pending approval with the USFDA. In addition to these internal filings, Glenmark continues to identify and explore external development partnerships to supplement and accelerate the growth of its existing pipeline and portfolio.

The BSE Sensex and NSE Nifty opened on a flat note on Friday. Sensex opened 40.34 points up at 26,878.48. Nifty opened 11.8 points up at 8,123.55.(Photo: Reuters)

9.44 am: Blue Star has entered into a Joint Venture (JV) in MEP contracting business with WJ Towell & Company LLC, Oman, by acquiring 51 per cent stake in the JV entity, Blue Star Oman Electro-Mechanical Company LLC. The share price of Blue Star was trading 1.49 per cent down at Rs 374. Sensex was down 2 points at 26,835.

9.40 am: Future & Option (F&O) total turnover stood at 5,16,209.36 crore on October 29 and the total number of contracts traded on the day were 1,96,23,236. 

9.38 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 2039.79 crore in index futures and options segments, as per Thursday’s data, October 29, 2015.

FIIs were net sellers of index futures to the tune of Rs 47.81 crore and they bought index options worth Rs 2087.60 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 997.74 crore, while they bought stock options worth Rs 3.48 crore.

9.16 am: Sensex was down 6.36 points at 26,831.78. Nestle India stocks will be in focus on Friday after the company post market hours on Thursday reported a 60.1 per cent decline in its standalone net profit at Rs 124.20 crore for the third quarter ended September 2015 after Maggi noodles controversy. Nestle shares were down 0.99 per cent at Rs 6,220 apiece in the early trade.

9.15 am: The BSE Sensex and NSE Nifty opened on a flat note on Friday. Sensex opened 40.34 points up at 26,878.48. Nifty opened 11.8 points up at 8,123.55.

Dr Reddy’s Lab will also be in focus as the drug major on Thursday reported 25.74 per cent increase in its consolidated net profit at Rs 721.89 crore for the second quarter ended September 30, 2015.

Global Markets

New York: US stocks ended slightly lower on Thursday as the market digested disappointing tech earnings reports and the potential for an interest rate hike in December.

London: Britain’s top share index fell on Thursday, underperforming European indexes, after a spate of disappointing earnings updates and a decline in copper prices that put pressure on mining shares.

Tokyo: Japanese stocks dipped in trade on Friday morning after the Bank of Japan announced that it would keep monetary policy steady.

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Friday tracking Asian markets. (Photo: Reuters)

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Friday tracking Asian markets.

Asian shares were down on Friday and on track for a weekly loss as investors, anxious over faltering global growth, fretted about the possibility that the US Federal Reserve could still raise borrowing costs this year.

Hang Seng, Shanghai and Nikkei were down 0.49 per cent, 0.40 per cent and 0.15 per cent, respectively.

SGX Nifty was amost flat, up 0.08 per cent at 8,140.

Back home, Sensex and Nifty fell for a fourth consecutive day on Thursday as market participants continued to square-up positions following last trading session of the October derivatives expiry. Concerns that likely Fed rate hike in December would see outflows from emerging markets, too dampened sentiments. Sensex closed 201 points down at 26,838.14 while Nifty closed 59.45 points down at 8,111.75.

Nestle India stocks will be in focus on Friday after the company after market hours on Thursday reported a 60.1 per cent decline in its stand-alone net profit at Rs 124.20 crore for the third quarter ended September 2015 after Maggi noodles controversy.

Dr Reddy’s Lab will also be in focus as the drug major on Thursday reported 25.74 per cent increase in its consolidated net profit at Rs 721.89 crore for the second quarter ended September 30.