Credo Brands (Mufti Jeans) IPO Lists 0.84% higher, then surges

Listing day show of Credo Brands Marketing Ltd (MUFTI)

Credo Brands (Mufti Jeans) IPO had a very moderate listing on 27th December 2023, listing at a flat premium of 0.84% on the NSE but on top of that managed to gain sharply from the listing price. Credo Brands (Mufti Jeans) IPO closed the day at ₹311 per share, a premium of 10.15% over the listing price of ₹282.35 per share and a premium of 11.07% over the IPO issue price of ₹280 per share. Certainly, the IPO allottees of Credo Brands Marketing Ltd (MUFTI) would be pleased at the close of the first day of listing of the stock. The pattern was exactly similar on the BSE also. On the Bombay Stock Exchange (BSE), the stock of Credo Brands Marketing Ltd (MUFTI) opened at ₹282 per share, a flat premium of 0.71% over the IPO issue price of ₹280 per share. For the day, the stock closed on the BSE at ₹312.50, an overall gain of 10.82% over the IPO listing price of ₹282 per share and a premium of 11.61% over the issue price of ₹280 per share. On the NSE and the BSE, the stock of Credo Brands Marketing Ltd (MUFTI) closed the listing day well above the listing price and the IPO issue price.

While the closing price of Credo Brands Marketing Ltd (MUFTI) on 27th December 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed comfortably above the listing price on the BSE and also on the NSE. For the day, the Nifty closed 213 points higher while the Sensex closed a full 702 points higher. Both the Nifty and the Sensex showed sterling gains on Wednesday, gaining close to 1% in a single day of trade. That rubbed off on the stock price performance of Credo Brands Marketing Ltd (MUFTI).

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 51.85X  overall and QIB subscription was at 104.95X. In addition, the retail portion had got subscribed 19.94X in the IPO while the HNI / NII portion also got a healthy subscription of 55.52X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed above the issue price of the IPO as well as the listing price for the day.

The IPO price was fixed at the upper end of the band at ₹280 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹266 to ₹280 per share. On 27th December 2023, the stock of Credo Brands Marketing Ltd (MUFTI) listed on the NSE at a price of ₹282.35 per share, a flat premium of 0.84% over the IPO issue price of ₹280 per share. On the BSE also, the stock listed at ₹282, a flat premium of 0.71% over the IPO issue price of ₹280 per share. Here is the Credo Brands Marketing Ltd (MUFTI) listing story on 27th December 2023.

How the stock of Credo Brands Marketing Ltd (MUFTI) closed on both exchanges

On the NSE, Credo Brands Marketing Ltd (MUFTI) closed on 27th December 2023 at a price of ₹311 per share. That is a first day closing premium of 11.07% on the issue price of ₹280 and also a premium of 10.15% on the listing price of ₹282.35 per share. The stock traded in a range for most part of the day. On the BSE also, the stock closed at ₹312.50. That represents a first day closing premium of 11.61% above the IPO issue price and also a premium of 10.82% above the listing price on the BSE at ₹282 per share.

On both the exchanges, the stock listed marginally above the IPO issue price and also managed to close Day-1 rallying higher, and closing above the issue price and the listing price of the day. In fact, the opening price was closer to the low price of the day on the BSE as well as on the NSE. The high price of the day on both the stock exchanges on 27th December 2023 was the well above the listing price, but the stock did see some selling pressure at higher levels. In fact, on the NSE, the stock closed with open selling quantity of 35,022 shares, showing pent up selling pressure on the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Credo Brands Marketing Ltd (MUFTI) 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 27th December 2023. On Day-1 of listing, Credo Brands Marketing Ltd (MUFTI) touched a high of ₹324.80 per share on the NSE and a low of ₹261.60 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was closer to the IPO opening price, the stock of Credo Brands Marketing Ltd (MUFTI) closed sharply lower than the high price of the day as selling at higher levels was visible. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Credo Brands Marketing Ltd (MUFTI) had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the NSE, the upper circuit price was ₹338.80 per share while the lower circuit price was ₹225.90 per share. During the day, the high price of the day at ₹324.80 was well lower than the upper band price while the low price of the day at ₹261.60 per share was well above the lower band price for the day at ₹225.90 per share. On Day-1 of listing, the Credo Brands Marketing Ltd (MUFTI) stock traded a total of 312.06 lakh shares on NSE amounting to traded value of ₹934.36 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some genuine profit booking visible towards the end of the trading session. The stock closed the day with pending sell orders of 35,022 shares on the NSE.

Price volume story of Credo Brands Marketing Ltd (MUFTI) on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 27th December 2023. On Day-1 of listing, Credo Brands Marketing Ltd (MUFTI) touched a high of ₹324.55 per share on the BSE and a low of ₹262.05 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was closer to the IPO opening price, the stock of Credo Brands Marketing Ltd (MUFTI) closed sharply lower than the high price of the day as selling at higher levels was visible. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Credo Brands Marketing Ltd (MUFTI) had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹375 per share while the lower circuit price was ₹250 per share. During the day, the high price of the day at ₹324.55 was well lower than the upper band price while the low price of the day at ₹262.05 per share was well above the lower band price for the day at ₹250 per share. On Day-1 of listing, the Credo Brands Marketing Ltd (MUFTI) stock traded a total of 18.29 lakh shares on BSE amounting to traded value of ₹54.64 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some genuine profit booking visible towards the end of the trading session. The stock closed the day with pending sell orders on the BSE also.  

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 genuine hint of profit booking visible by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 312.06 lakh shares traded during the first day of trading, the deliverable quantity represented 89.80 lakh shares or a deliverable percentage of 28.78% on the NSE, which is sharply lower than the routine listing day median.

That shows a lot of speculative trading action in the counter on the first day of trading. Even on the BSE, out of the total 18.29 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 4.71 lakh shares representing total deliverable percentage of 25.77%, which is at par with the NSE, but lower than the typical listing day median. On the BSE also, there was a lot of speculative trading volumes visible in the counter. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, Credo Brands Marketing Ltd (MUFTI) had a market capitalization of ₹2,009.43 crore with free-float market cap of ₹442.08 crore. Credo Brands Marketing Ltd (MUFTI) has issued capital of 643.02 crore shares with a par value of ₹2 per share.