Sita Shree Food lists at premium of 25% on NSE

MUMBAI: Sita Shree Food Products shares listed on Monday at the issue price of Rs 30. At 10:01 am, the shares were up 33.83 per cent to Rs 40.15. The high so far was Rs 43.40 and low Rs 33.95.

The total quantity traded on NSE was 37,88,882 shares and turnover Rs 15.30 crore.

On BSE, the shares opened at Rs 30 and rose to a high of Rs 43.40. The low was Rs 30. The total quantity traded was 33,12,350 shares.

Sebi will reduce IPO listing time from 21 to 7 days in 6 months - Bhave

Bhave told Live mint “I always hear the argument that while the secondary market processes have been made very efficient, in the primary market it takes a long time for an IPO (initial public offering) to get listed after it closes. The delay throws up issues of its own and we try to address the issues in different ways, instead of reducing the time gap. Why can’t we reduce the gap? We are far more technologically equipped today than when we started the secondary market reforms in the mid-1990s.
Let’s take the case of Reliance Power Ltd’s IPO. We had something like 45 lakh applications, and along with these 45 lakh applications, 45 lakh payment instruments were put through the clearing system.

None of the applicants gets full allotment of shares in such hugely subscribed issues. This means for every single applicant, refund is due—either fully or partly. So, another 45 lakh refund orders need to go through the clearing system. Overall, 90 lakh instruments need to go through the clearing system and the postal department needs to carry these instruments. This is an anachronism when the banks are technologically well equipped.”

Why does money have to leave an investor’s account when he is applying for shares? Can we have a mechanism to lock the money in the bank account when one applies for shares? The banker can give the data to the registrar. Essentially, till the shares are allotted, the investor cannot use the money meant for the shares even though no physical transfer of money takes place at the time of application (of shares). Once the allotment is done, the registrar can instruct the bank to transfer funds, depending on the shares allotted, and remove the lock. We can eliminate the movement of instruments both ways—as application money and refund.