Cellecor Gadgets IPO Opens Flat, then hits Upper Circuit

Flat listing for Cellecor Gadgets IPO, then hits upper circuit

Cellecor Gadgets Ltd had a flat listing on 28th September 2023, listing exactly at the IPO issue price, and subsequently hitting the 5% upper circuit on the listing price. Of course, the stock closed comfortably above the IPO issue price and the IPO listing price for the day. What is worth noting here is that this happened despite the Nifty falling by 193 points during the day and the Sensex closing sharply lower by 610 points. With subscription of 124.08X for the retail portion, 176.54X for the HNI / NII portion, and 57.58X for the QIB portion; the overall subscription was healthy at 116.33X. The IPO was a book built issue in the price band of ₹87 to ₹92 per share and the IPO price was discovered at ₹92 per share.

As part of the fresh issue portion of the IPO, Cellecor Gadgets IPO had issued a total of 55,18,800 shares (55.19 lakh shares approximately), which at the upper band IPO price of ₹92 per share aggregated to fresh fund raising of ₹50.77 crore. Since there was no offer for sale portion in the IPO, the total issue size of Cellecor Gadgets Ltd also entailed the issue and sale of 55,18,800 shares (55.19 lakh shares approximately), which at the upper band IPO price of ₹92 per share resulted in total IPO size of ₹50.77 crore.

Stock closes Day-1 at 5% upper circuit, after a flat opening

Here is the pre-open price discovery for the Cellecor Gadgets IPO on the NSE.

Data Source: NSE

On 28th September 2023, the stock of Cellecor Gadgets IPO listed flat on the NSE at a price of ₹92, exactly at the IPO issue price of ₹92 per share. However, the stock got a further boost post listing and it closed the day at a price of ₹96.60 which is 5% above the IPO issue price of ͭ₹92 per share and also a full 5% above the listing price of the stock at ₹92 per share on the first day of listing. In a nutshell, the stock of Cellecor Gadgets Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers in the counter, despite a flat start to trade. 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 for the SME stocks. The opening price actually turned out to be almost the mid-point between the low price of the day and the high price of the day. However, the closing price was exactly at the high price of the day, being the 5% upper circuit limit for the day on 28th September 2023.

How prices traversed for Cellecor Gadgets IPO on listing day

On Day-1 of listing i.e., on 28th September 2023, Cellecor Gadgets Ltd touched a high of ₹96.60 on the NSE and a low of ₹88.15 per share. The high price of the day was exactly the closing price of the stock while the stock opening price of the day was almost like the middle point between the high price of the day and the low price of the day, hinting at substantial volatility in the stock price during the day. The closing price of the day, or the high price of the day, also represented the upper circuit of 5%. That is the maximum that the SME IPO stock is allowed to move in the day, either ways. What is appreciable of this smart close on the day is that it happened on a day when the Nifty was down by 193 points and the Sensex was down 610 points. The stock closed at the 5% upper circuit with 3,45,600 buy quantity and no sellers in the counter. For the SME IPOs, it may be recollected, that 5% is the upper limit and also the lower circuit on the listing price on the day of listing.

Robust volumes for Cellecor Gadgets IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Cellecor Gadgets Ltd stock traded a total of 17.688 lakh shares on NSE SME segment amounting to value of ₹1,642.15 lakhs on the first day.  The order book during the day showed a lot of buying with the buy orders consistently exceeding the sell orders at any point of time. That also led the stock to close at the upper end of the circuit filter. It must be noted here that Cellecor Gadgets 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, Cellecor Gadgets Ltd had a market capitalization of ₹202.55 crore with free-float market cap of ₹98.16 crore. It has a total of 209.68 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 17.688 lakh shares during the day is accounted for only by delivery trades only.