E-Factor Experiences IPO Listed 53.33% Higher

E Factor Experiences Ltd hits upper circuit, after bumper listing

E Factor Experiences Ltd had a strong listing on 09th October 2023, listing at a premium of 53.33%, 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. For the day, the Nifty closed 141 points lower while the Sensex closed with losses of 483 points. Both the Nifty and the Sensex have now seen a big loss on Monday after two consecutive days of gains and this performance by E Factor Experiences Ltd on the day of listing was especially creditable as it came on the back of a very weak market. The overall markets were hit by the geopolitical risk in West Asia and that dampened the enthusiasm of the investors.

With subscription of 47.78X for the retail portion, 46.09X for the QIB portion and 168.26X for the HNI / NII portion; the overall subscription was extremely healthy at 73.14X. The IPO was a book building issue in the price band of ₹71 to ₹75 per share and the price discovery happened at the upper end of the band at ₹75 per share; which is hardly surprising looking at the rather overwhelming response to the IPO. The stock listed at a strong premium of 53.33%, and the performance continued despite the cautious sentiments in the market along with sustained concerns over rising geopolitical risks in the Middle East and West Asia. Despite a strong and robust listing, the stock further gained 5% to hit the upper circuit for the day. This showed added strength and momentum in the stock after such a robust and premium listing of 53.33% on opening.

Stock closes Day-1 at 5% upper circuit, after a 53.33% premium start

Here is the pre-open price discovery for the E-Factor Experiences IPO on the NSE.

Data Source: NSE

The SME IPO of E Factor Experiences Ltd was priced at ₹75 per share, at the upper end of the IPO price band. On 09th October 2023, the stock of E Factor Experiences Ltd listed on the NSE at a price of ₹115, a premium of 53.33% over the IPO issue price of ₹75 per share. However, the stock got a further boost post listing and it closed the day at a price of ₹120.75 which is 61% above the IPO issue price of ͭ₹75 per share and a full 5% above the listing price of the stock at ₹115 per share on the first day of listing. In a nutshell, the stock of E Factor Experiences 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.

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. The low price of the day was the opening price of the day at Rs115 per share while the stock closed trading on 09th October 2023 at a price of Rs120.75. Even the negative sentiments in the market overall and the geopolitical risks did not deter the stock from touching the 5% upper circuit, which is where it closed for the day. Being an SME IPO stock, it is constrained by the 5% upper circuit limit for the day.

How prices traversed for E Factor Experiences Ltd on listing day

On Day-1 of listing i.e., on 09th October 2023, E Factor Experiences Ltd touched a high of ₹120.75 on the NSE and a low of ₹115 per share. The high price of the day was exactly the closing price of the stock while the stock low price of the day was exactly at the listing price. In fact, the stock did not go below the listing price of the day at any point of time and once it hit the upper circuit of 5%, it just stayed there for the whole day. The closing price of the day, or the high price of the day, also represents the upper circuit of 5%. That is the maximum that the SME IPO stock is allowed to move in the day, either ways and the stock moved the entire permissible range during the day.

In fact, the stock enjoyed a strong listing and a close at the upper circuit on a day of sharp market correction. Despite such negative sentiments in the market, the stock of E Factor Experiences Ltd, not only opened with a strong gap, but also gained further to touch the upper circuit for the day. The stock closed at the 5% upper circuit with 73,600 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. Incidentally, the stock did not go below the listing price but hit the upper circuit early on.

Robust volumes for E Factor Experiences Ltd on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the E Factor Experiences Ltd stock traded a total of 13.008 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹1,513.35 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 E Factor Experiences 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 only.

At the close of Day-1 of listing, E Factor Experiences Ltd had a market capitalization of ₹158.04 crore with free-float market cap of ₹41.74 crore. It has a total of 130.88 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 13.008 lakh shares during the day is accounted for only by delivery trades only, barring some market trade exceptions, which could occur occasionally.