C P S Shapers IPO lists at 143.24% premium, then hits upper circuit

Robust listing for C P S Shapers IPO; plus, an upper circuit

C P S Shapers IPO had a very robust listing on 07th September 2023, listing at a very robust premium of 143.24%, but subsequently also hitting the 5% upper circuit. Of course, the stock not only closed substantially above the IPO issue price of ₹185 per share, but also well above the listing price. To an extent the market was helped by the sentiments in the market with the Nifty closing with smart gains of 116 points for the day and well above the level of 19,700. However, it must be said here that C P S Shapers Ltd had been down in early trades but closed the day at the upper circuit with no sellers on the counter. The buying pressure in the counter through the day was much more evident in the second half of trading, helping the stock to close the day, locked in the upper circuit.

The stock of C P S Shapers IPO showed a lot of robustness, even on top of a very strong listing on the bourses. To an extent, the positive sentiments in the market also played a role and the situation could have been different had the markets cracked. The stock opened substantially above the issue price and then in a show of strength, it managed to close at the upper circuit of 5% and held on at that level till the end of the day. Being an NSE SME IPO, it is only traded on the SME segment of NSE. C P S Shapers Ltd opened 143.24% higher and not only held that level but even got itself locked into upper circuit of 5%, where it stayed put at the close of trade. This is despite trading lower for better part of the day. The stock dipped well below the IPO listing price for the day but managed to close at the high price of the day, which was also the 5% upper circuit for the stock.

The stock closed the day 5% above the IPO listing price and 155.41% above the IPO price of ₹185 per share. With subscription of 301.03X for the retail portion and 198.17X for the HNI / NII portion; the overall subscription was very strong at 253.97X. The subscription numbers were very strong compared to the normal benchmark subscriptions that SME IPOs get. These subscription numbers allowed the stock to list at a substantial premium of 143.24% on a day when the market sentiments were also relatively strong. However, the stock managed to hit the upper circuit after trading below the listing price for most part of the day, in a late show of strength by the stock. Here is the listing day story of C P S Shapers Ltd for 07th September 2023, the day of listing.

C P S Shapers IPO lists on Day-1 at mega premium, then hits upper circuit

Here is the pre-open price discovery for the C P S Shapers SME IPO on the NSE.

Data Source: NSE

C P S Shapers IPO was a fixed price IPO which had been fixed at ₹185 per share. On 07th September 2023, the stock of C P S Shapers Ltd listed on the NSE at a price of ₹450, a premium of 143.24% on the IPO issue price of ₹185 per share. Not surprisingly, the listing was robust considering that the issue was oversubscribed substantially in the IPO.

While the stock faced pressure post listing and traded below the listing price, it managed to recoup itself and close the day at the 5% upper circuit. The closing price of ₹472.50 per share reflected the 5% upper circuit price on the listing price. Now, the closing price is 155.41% above the IPO issue price and 5% above the listing price of the stock on the first day of listing. It closed the day exactly at the upper circuit of the stock at 5%, which is the statutory norm for SME IPO, since they list on trade to trade (T2T) basis only. The listing can be classified as a bumper listing, although it can be said to be a tepid trading start followed by an encouraging close.

In a nutshell, the stock of C P S Shapers Ltd had closed the day exactly at the 5% upper circuit relative to the IPO listing price. The low price of the day was well below the opening listing price but the stock bounced subsequently and closed at the high price of the day, which also marked the 5% upper circuit filter. Like the upper circuit price, even the lower circuit price on listing day is calculated on the listing price and not on the IPO price. However, that was not really relevant for C P S Shapers Ltd, which closed at the 5% upper circuit for the day.

How prices traversed for C P S Shapers IPO on listing day

On Day-1 of listing i.e., on 07th September 2023, C P S Shapers Ltd touched a high of ₹472.50 on the NSE and a low of ₹427.50 per share on the NSE. The high price of the day was 5% upper circuit level for the day, where the stock closed. The low price was well below the listing price and reflected the 5% lower circuit, but the stock showed a robust bounce from that level. Once the stock hit the upper ceiling circuit, it just stayed locked at that level.

All SME stocks, by default, are introduced to trading in the SME segment on trade-to-trade basis. That means, these stocks will mandatorily be on pure delivery basis (intraday not permitted), while the stock would be subjected to 5% circuit limits on the upside and on the downside. What is truly appreciable is that the stock closed at the upper circuit, despite C P S Shapers Ltd facing pressure and even touching the lower circuit in early trades on Thursday. The stock touched the 5% upper circuit during the day after touching the 5% lower circuit, but at close it stayed locked at the upper circuit. It actually closed the day with unabsorbed buy quantity pending and no sellers on the counter. For the SME IPOs, 5% is the upper limit and also the lower circuit on the listing price on the day of listing.

Robust volumes for C P S Shapers IPO on listing day

Let us now turn to the volumes of C P S Shapers IPO on the NSE. On Day-1 of listing, the C P S Shapers Ltd stock traded a total of 3.89 lakh shares on NSE SME segment amounting to value of ₹1,725.84 lakhs on the first day.  The order book during the day showed a lot of consistent buying with the buy orders consistently exceeding the sell orders at any point of time, especially prominent in the second half of trade.

It must be noted here that C P S Shapers Ltd is in the trade to trade (T2T) segment so only delivery trades are possible on the stock. Hence the entire volume for the day purely represents the delivery volumes. At the close of Day-1 of listing, C P S Shapers Ltd had a market capitalization of ₹99.23 crore with free-float market cap of ₹28.49 crore. It has a total of 21 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 3.89 lakh shares during the day, barring some trade related exceptions, is accounted for only by delivery trades.

Brief on the business model of C P S Shapers Ltd

C P S Shapers Ltd was incorporated in 2012, to engage in the business of manufacturing Shapewear for Men and Women through its brands “Dermawear”. The company currently sells the products via offline and online channels.  C P S Shapers Ltd has a very wide product portfolio, which includes saree shapewear, mini shaper, sports bra, Mini corsets, tummy reducers, Active Pants, Denim, Mask, and other shapewear. The company has a pan-India presence and its distributor network is spread across 28 states and 8 Union territories in India. It also has a robust export market and reaches out globally to Canada, Germany, Australia, UK, and the US. While the company has its manufacturing unit located at Meerut in Uttar Pradesh; its warehousing facilities are located at Palghar in Maharashtra, and Tirupur in Tamil Nadu.

As of date, the company has over 50 products in its catalogue, more than 6,000 retail presence counters, over 10 online sales channels, established presence in omnichannel selling as well as presence in 6 countries. The company was founded with the intent to create a forward-looking brand that combines innovative designs with functionality and comfort. The journey began when Dermawear introduced a range of stockings and shapewear, revolutionizing the way people perceive body shaping and support garments. Today, the product portfolio of C P S Shapers Ltd includes a wide array of meticulously crafted shapewear and athleisure clothing, across fashion preferences.

The company has been promoted by Abhishek Kamal Kumar and Rajendra Kumar. The promoter holding in the company currently stands at 99.80%. However, post the fresh issue of shares and the OFS, the promoter equity holding share will reduce to 71.29%. The fresh issue funds will be used by the company for purchase of plant & machinery, purchase of commercial vehicles, capex for solar power systems, IT upgradation, repayment of loans and funding of working capital gaps. While Shreni Shares Private Ltd will be the lead manager to the issue, Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Shreni Shares Private Ltd.