Apeejay Surrendra Hotels IPO Lists 20% higher, then rallies higher

Apeejay Surrendra Park Hotels Ltd premium listing, rallies further

Apeejay Surrendra Park Hotels IPO had a relatively robust listing on 12th February 2024, listing at a robust premium of 20% on the NSE but on top of that managed to close with smart gains of 10.22% over the listing price. The stock of Apeejay Surrendra Park Hotels Ltd closed the day at ₹205 per share, a premium of 10.22% over the listing price of ₹186 per share and a premium of 32.26% over the IPO issue price of ₹155 per share. Certainly, the IPO allottees of Apeejay Surrendra Park Hotels Ltd would be pleased at the way the stock managed to close in the positive on the day and also rally further, despite the sharply negative vibes from the Nifty and the Sensex during the day of listing.

The pattern was largely similar on the BSE also, with the stock opening at a premium and then rallying further during the day. On the Bombay Stock Exchange (BSE), the stock of Apeejay Surrendra Park Hotels IPO listed at ₹187 per share, a premium of 20.65% over the IPO issue price of ₹155 per share. For the day, the stock closed on the BSE at ₹203.45, an overall premium of 8.80% on the IPO listing price of ₹187 per share and also a hefty premium of 31.26% over the issue price of ₹155 per share.  On the NSE, the stock of Apeejay Surrendra Park Hotels Ltd closed the listing day well below the high price of the day, but it also bounced very sharply from lower levels during the day. On the BSE also, the stock of Apeejay Surrendra Park Hotels Ltd closed the day below the high price of the day, but displaying a sharp rebound from lower levels during listing day on 12th February 2024.

Stock gains amidst big sell-off in the major indices

While the closing price of Apeejay Surrendra Park Hotels Ltd on 12th February 2024 was substantially above the IPO issue price on both the stock exchanges, it did also hit the upper circuit and the lower circuit on both the stock exchanges. In fact, the stock closed above the listing price on the NSE and the BSE. However, it must be remembered that this was helped by a strong recovery in the price from lower levels. The volatility of the stock price is evident from the fact that the stock tried getting close to the 20% upper circuit and the 20% lower circuit on the same day. However, the close was positive due to bounce in second half.

On 12th February 2024, the Nifty closed 166 points lower while the Sensex closed 523 points lower. On both the exchanges, it was more an example of the indices seeing a massive sell-off by the traders. The negative sentiments were triggered by several factors like the persistent FPI selling, the worsening Red Sea crisis in the Middle East as well as the quarterly results for Q3FY24 being below expectations. All these factors combined to put pressure on the markets which led to the sharp sell-off on Monday.

IPO subscription and pricing details

The stock had reported strong subscription in the IPO. The subscription was 62.91X  overall and QIB subscription was at 79.23X. In addition, the retail portion had got subscribed 32.00X in the IPO while the HNI / NII portion also got a heavy subscription of 55.26X. Hence the listing was expected to be relatively strong for the day. However, while the listing was strong, the performance of the stock subsequently betrayed a lot of volatility as the stock touched the upper circuit and the lower circuit during the same day. However, eventually the stock managed  a smart bounce from lower levels on 12th February 2024.

The IPO price was fixed at the upper end of the band at ₹155 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹147 to ₹155 per share. On 12th February 2024, the stock of Apeejay Surrendra Park Hotels Ltd listed on the NSE at a price of ₹186 per share, a premium of 20% over the IPO issue price of ₹155 per share. On the BSE also, the stock listed at ₹187 per share, a premium of 20.65% over the IPO issue price of ₹155 per share. Here is the Apeejay Surrendra Park Hotels Ltd listing story on 12th February 2024.

How the stock of Apeejay Surrendra Park Hotels Ltd closed on both exchanges

On the NSE, Apeejay Surrendra Park Hotels Ltd closed on 12th February 2024 at a price of ₹205 per share. That is a first day closing premium of 32.26% on the issue price of ₹155 and also a premium of 10.22% on the listing price of ₹186 per share. In fact, the listing price turned out to be the mid-point of the day with the stock getting close to the upper circuit and the lower circuit during the same trading day. On the BSE also, the stock closed at ₹203.45 per share. That represents a first day closing premium of 31.26% above the IPO issue price of ₹155 per share and a premium of 8.80% above BSE listing price of ₹187 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher. There are some key points to note here. Normally, the mainboard IPOs have a circuit filter of 20% either ways; which was the case with Apeejay Surrendra Park Hotels Ltd; but the stock hit both the circuit filters on the same day. The stock traded on the NSE and the BSE in the normal segment with rolling settlement cycle. On the NSE, the stock closed with open unmet buying quantity of 55,872 shares, showing a lot of pent up buying pressure for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Apeejay Surrendra Park Hotels Ltd on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 12th February 2024. On Day-1 of listing, Apeejay Surrendra Park Hotels Ltd touched a high of ₹223.20 per share on the NSE and a low of ₹171.25 per share. The premium to the listing price sustained through most part of the day. However, in the first half, the stock was under a lot of pressure before it bounced back in the second half to close in the positive. During the day, the stock touched the upper circuit and also showed a sharp bounce from lower levels. That resilience helped the stock.

For the day on the NSE, the upper circuit price was ₹223.20 per share while the lower circuit price was ₹148.80 per share. During the day, the high price of the day at ₹223.20 was exactly at the upper band price while the low price of the day at ₹171.25 per share was well above the lower band price for the day at ₹148.80 per share. On Day-1 of listing, the Apeejay Surrendra Park Hotels Ltd stock traded a total of 580.12 lakh shares on NSE amounting to value of ₹1,115.33 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly shifting in favour of the buyers in the second half, after some sharp selling in the first half of the day. The stock closed the day with pending buy orders of 55,872 shares on the NSE, showing pent-up buying.

Price volume story of Apeejay Surrendra Park Hotels Ltd on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 12th February 2024. On Day-1 of listing, Apeejay Surrendra Park Hotels Ltd touched a high of ₹223.20 per share on the BSE and a low of ₹170.15 per share. The premium to the listing price sustained through most part of the day. However, in the first half, the stock was under a lot of pressure before it bounced back in the second half to close in the positive. During the day, the stock touched the upper circuit and also showed a sharp bounce from lower levels. That resilience helped the stock.

For the day on the BSE, the upper circuit price was ₹244.10 per share while the lower circuit price was ₹162.80 per share. During the day, the high price of the day at ₹223.50 was well below the upper band price while the low price of the day at ₹170.15 per share was well above the lower band price for the day at ₹162.80 per share. On Day-1 of listing, the Apeejay Surrendra Park Hotels Ltd stock traded a total of 49.06 lakh shares on BSE amounting to value of ₹93.82 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly shifting in favour of the buyers in the second half, after some sharp selling in the first half of the day. The stock closed the day with pending buy orders on the BSE, showing pent-up buying.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with some hints of offloading in the first half of the trading session. The sharp fall in the Nifty and the Sensex did not really deter the stock of Apeejay Surrendra Park Hotels Ltd from bouncing back sharply from lower levels. That makes it a rather attractive stock after the strong listing on Monday and its ability to sustain gains on a tough trading day. On the NSE, out of the total 580.12 lakh shares traded during the first day of trading, the deliverable quantity represented 252.54 lakh shares or a deliverable percentage of 43.53% on the NSE. This is nearly at par with the median delivery percentage that IPOs see on the NSE on listing day.

Even on the BSE, out of the total 49.06 lakh shares of quantity traded, the delivery volumes stood at 16.11 lakh shares. In percentage terms, this translates into a delivery percentage of 32.84%. Now, this is lower than the delivery percentage on the NSE and also lower than the median on the BSE, indicating that the speculative intraday volumes were quite high on the counter. Being a normal rolling settlement stock, even on listing day, delivery and intraday trades are permitted on the counter.

At the close of Day-1 of listing, Apeejay Surrendra Park Hotels Ltd had a market capitalization of ₹4,341.10 crore with free-float market cap of ₹651.16 crore. Apeejay Surrendra Park Hotels Ltd has issued capital of 2,133.74 lakh shares with a par value of ₹1 per share. The ratio of market cap to issue size (a sign of market liquidity creation) was 4.72X.