Opinion
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The curious case of Agro Phos India Ltd

by Prashanth Krish · 30th December 2019

Agro Phos India came out with an IPO offering of 5,880,000 equity shares of face value of ₹10 aggregating up to ₹12.94 Crores. The issue price of the IPO is ₹19 to ₹22 Per Equity Share. Being a SME, this would be listed on the SME segment of the National Stock Exchange.

Stock was listed at a small premium and quickly went below the offer price but not by much where it remained for nearly a year. The stock started to ramp up in October of 2018. <SME Chart>

Agrophos Chart when it was trading in the SME Segment

As the chart above shows, the stock after another brief period of consolidation continued its upward rise till it got promoted to the main board in March of 2019. On the main board, it climbed a bit but not much till mid September when something really kicked off.

The stock started to climb vertically at a 45Degree angle. The surprising thing about this rise has been the delivery volumes. Between the 16th of September to 26th of December when it fell 20%, the stock had a delivery volume of 1.57 Crores.

Action post listing on the Main Board

The public shareholding as of 30th September is 92 Lakhs of which only 75 lakhs are in Demat Mode. Individual Shareholders actually hold just around 50 Lakhs. Basically the total delivered volume is 3 times what retail holds

Rare are occurrences where such huge delivery activity comes up even as the stock keeps moving higher every single day. General pump and dump has always been with very little stock being delivered. Wonder if I am missing something here

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