Finelistings Technologies IPO Listed 3.25% Higher, Hits Upper Circuit

Modest listing for Finelistings Technologies IPO, then upper circuit

Finelistings Technologies IPO had a very modest listing on 14th May 2024, listing at a premium of just 3.25%. After a modest opening, the stock closed the day at the 5% upper circuit over the listing price. For the day, the stock closed above the IPO issue price and the IPO listing price at the close of trading on 14th May 2024. What also stood out about the stock was the modest listing despite the strong overall market sentiments. For the day, the Nifty closed 114 points higher, while the Sensex closed a full 328 points higher. The positive sentiments in the market just happened to give a further boost to the stock of Finelistings Technologies Ltd on listing day, as it closed at upper circuit despite a tepid start.

Subscription and price performance of Finelistings Technologies IPO on listing day

Let us now turn to the subscription story of Finelistings Technologies IPO. With robust subscription of 38.96X for the retail portion, and 29.85X for the HNI / NII portion; the overall subscription was modestly strong at 37.44X. The IPO was a fixed price issue with the IPO price fixed at ₹123 per share. Being a fixed price issue, there was no question of price discovery in this case.

Despite a very modest listing on 14th May 2024, the stock not only went on to close the day at the upper circuit, but also never fell below the listing price of the day. This was reflective of strength in the stock amidst the volatile market sentiments. The subscription impacts the price discovery in fixed price issues in 2 ways. Firstly, the modest subscription ensured that the stock price listing was at a very modest premium of 3.25% to the issue price. Secondly, despite volatility in the markets, the stock closed at the 5% upper circuit for the day.

Stock closes Day-1 at upper circuit, after a strong listing start

Here is the pre-open price discovery for the SME IPO of Finelistings Technologies Ltd on the BSE.

Data Source: BSE

The SME IPO of Finelistings Technologies Ltd was a fixed price IPO and priced at ₹123 per share. On 14th May 2024, the stock of Finelistings Technologies Ltd listed on the BSE at a price of ₹127 per share, a premium of 3.25% over the IPO issue price of ₹123. However, despite a volatile day post listing on 14th May 2024, the stock of Finelistings Technologies Ltd closed exactly at the upper circuit price of ₹133.35 per share on the BSE SME segment. The stock had an upper circuit limit of ₹133.35 for the day and a lower circuit limit of ₹120.65 per share for the day. In the midst of the volatility in trading during the day, the stock hit the upper circuit but did not ever dip below the listing price, before bouncing back. The stock showed strength after a strong listing and closed at the upper circuit price of 5%.

The closing price reflects a modestly strong day of trading, because it closed at the upper circuit despite briefly touching the listing price of the day. Also, the upper circuit comes on top of 3.25% premium listing of the stock. Overall, the closing price of the stock of Finelistings Technologies Ltd was a full 8.41% above the issue price at the close of the first day of listing on the BSE SME segment. This can be called a commendable listing show, especially considering that the stock had shown signs of volatility in the morning.

Listed in the BSE MT segment for trade in T2T

Being an SME IPO on the BSE, the stock of Finelistings Technologies Ltd was subjected to 5% circuit filter on listing day and was also in the MT (trade to trade) segment. That means, only delivery trades are permitted on the stock. 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 exactly the listing price and well above the lower circuit level of the day, while the high price of the day was exactly the upper circuit price of the day. Eventually, the stock closed the day at the upper circuit price of the day.

On the BSE, the stock of Finelistings Technologies Ltd has been admitted to trade in the MT category. The MT category is specifically for the SME segment of the BSE with compulsory trade to trade settlement. On such stocks, netting of positions is not permitted and every trade has to be settled by delivery only.

How prices traversed for Finelistings Technologies IPO on listing day

On Day-1 of listing i.e., on 14th May 2024, Finelistings Technologies Ltd touched a high of ₹133.35 per share on the BSE and a low of ₹127 per share. The high price of the day was exactly the upper circuit limit price of the stock while the stock low price of the day was exactly the listing price, and well above the lower circuit of the day. Between these two prices, the stock was relatively less volatile and eventually closed at the upper circuit price of the day. In fact, the stock can be said to have enjoyed a modest listing despite a robust performance for the day by the Nifty and Sensex. Finelistings Technologies Ltd closed at 5% upper circuit on top of a modest premium listing on the BSE.

During the trading day, the stock of Finelistings Technologies Ltd opened above the issue price and closed at the upper circuit price. In terms of the circuit filter limits, the stock of Finelistings Technologies Ltd had an upper circuit filter limit of ₹133.35 per share and a lower circuit band limit of ₹120.65 per share. The stock closed the day 8.41% above the IPO issue price of ₹123 per share and it also closed 5% above the listing price of the day at ₹127 per share. During the day, the stock of Finelistings Technologies Ltd hit the upper circuit and stayed locked in the upper circuit for most part of the day. However, the listing price turned out to be the low price of the day as the stock stayed well clear of the lower circuit price of the day. The stock closed strong at the upper circuit with unmet buy quantity and no sellers in the counter. For the SME IPOs on the BSE, 5% is the upper limit and also the lower circuit on the listing price.

Robust volumes for Finelistings Technologies IPO on listing day

Let us now turn to the volumes of the stock on the BSE. On Day-1 of listing, the Finelistings Technologies Ltd stock traded a total of 5.51 lakh shares on BSE SME segment amounting to trading value (turnover) of ₹716 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 with pending buy orders (unmet) at the end of the trading session. It must be noted here that Finelistings Technologies 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, barring some minor shifts for error trades adjustment.

At the close of Day-1 of listing, Finelistings Technologies Ltd had a market capitalization of ₹48.49 crore with free-float market cap of ₹14.55 crore. As stated earlier, since the trading is on the T2T segment (MT segment of BSE), the entire volume of 5.51 lakh shares during the day is accounted by delivery trades only, barring some error trade exceptions in the market. The stock trades on the BSE SME segment under the trading code (544173) and will be available in the demat account under ISIN code (INE0QOQ01013).

IPO size to Market cap contribution ratio

One way to assess the significance of the IPO on the market cap of the segment is the ratio of market cap overall to the IPO size. Finelistings Technologies Ltd had a market cap of ₹48.49 crore and the issue size was ₹13.53 crore. Therefore, the Market cap contribution ratio of the IPO works out to 3.58 times; which is lower than the median. Remember, this is not the ratio of the market cap to original book value, but the ratio of the market cap created to the size of the IPO. That shows the significance of the IPO to the overall market cap accretion of the stock exchange.