Grill Splendour Services IPO Listed with 1.08%

Flat listing for Grill Splendour Services Ltd (Birdy’s), then upper circuit

Grill Splendour Services Ltd (Birdy’s) had a virtually flat listing on 23rd April 2024, listing at a premium of just 1.08% above the issue price. After a flat opening, the stock closed the day at the 5% upper circuit over the listing price. For the day, the stock closed comfortably above the IPO issue price and the IPO listing price at the close of trading on 23rd April 2024. What also stood out about the stock was the robustly strong listing even amidst the highly volatile and oscillating stock markets. In fact, on the day, the Nifty may have closed 32 points higher, but it was after a lot of wild swings in the market. In the last few days, the Nifty has been volatile but has managed to hold the 22,300 mark during the week, despite the general elections uncertainty as well as the tumult in the Middle East and West Asia. 

During the day, the Nifty opened  at a level of 22,447, but that also proved to be the high point for the day. From that level, it dipped to a low of 22,349, before closing the day at 22,368 levels. In other words, the opening was at the high point of the day and the closing was near to the low point of the day. What the Nifty gain of 32 points for the day does not tell us is that this daily performance came amidst a lot of weakness in the market with the undertone of the market being weak.

Subscription and price performance of Grill Splendour Services Ltd (Birdy’s) on listing day

Let us now turn to the subscription story of Grill Splendour Services Ltd (Birdy’s). With very modest subscription of 12.78X for the retail portion, and 4.59X for the HNI / NII portion; the overall subscription was very modest at 8.68X. There was no QIB portion in the IPO. The IPO was a fixed price IPO issue with the IPO price fixed at ₹120 per share. Being a fixed price issue, there really was no scope for price discovery. The stock listed at a modest premium of 1.08% on the NSE SME segment.

However, subsequently, despite the stock seeing some volatility in the early parts of the day, it went on to close at the upper circuit of 5% over the listing price. This was reflective of strength in the stock amidst the volatile market sentiments. Despite a tepid subscription, there were two positives in the listing. Firstly, the modest subscription levels led to the stock price listing at a very modest premium of 1.08% to the issue price. Secondly, despite pressure on the overall market and volatility, the stock closed at the 5% upper circuit for the day, which is a sign of inherent strength in the stock.

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

Here is the pre-open price discovery for the SME IPO of Grill Splendour Services Ltd (Birdy’s) on the NSE.

Data Source: NSE

The SME IPO of Grill Splendour Services Ltd (Birdy’s) was a fixed price IPO and priced at the ₹120 per share. On 23rd April 2024, the stock of Grill Splendour Services Ltd (Birdy’s) listed on the NSE at a price of ₹121.30 per share, a premium of 1.08% over the IPO issue price of ₹120. However, despite a volatile day post listing on 23rd April 2024, the stock of Grill Splendour Services Ltd (Birdy’s) closed exactly at the upper circuit price of ₹127.35 per share on the NSE SME segment. The stock had an upper circuit limit of ₹127.35 for the day and a lower circuit limit of ₹115.25 per share for the day. In the midst of the volatility in trading during the day, the stock hit the upper circuit but also briefly dipped marginally below the listing price, before bouncing back. However, despite the modest listing, the stock recovered sharply and closed at the upper circuit price of 5%.

Despite the volatility in the stock markets, the stock on listing day only went marginally below the listing price of the day, so obviously it stayed well away from the lower circuit. The closing price reflects a strong day of trading, because it closed at the upper circuit despite a very modest listing. The upper circuit close comes despite a modest 1.08% premium on listing of the stock, which is all the more appreciable, considering that the Nifty and the Sensex had showed a lot of volatility on the day of listing of Grill Splendour Services Ltd (Birdy’s). The Nifty had gained 32 points while Sensex was up 90 points on the day; amidst a lot of volatility. Overall, the closing price of the stock of Grill Splendour Services Ltd (Birdy’s) was a full 6.13% above the issue price at the close of the first day of listing on the NSE SME segment. This is a rather commendable listing show, especially considering that the stock had shown signs of jitteriness in the morning, although the stock price only briefly dipped below the IPO listing price of the day.

Listed in the ST segment for trade in T2T

Being an SME IPO on the NSE, the stock of Grill Splendour Services Ltd (Birdy’s) was subjected to 5% circuit filter on listing day and was also in the ST (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 issue price. The low price of the day was the listing price and well above the lower circuit level of the day, while the high price of the day was the upper circuit price of the day. Eventually, the stock closed the day at the upper circuit price of the day.

During the day, the stock hit the upper circuit but only after it had briefly spent time around the listing price, from where it bounced back sharply. While the stock briefly dipped below the listing price of ₹121.30 per share, it still stayed above the issue price and steered well clear of the lower circuit. For the day, the stock bounced sharply to get back to the upper circuit lock of the day. On the NSE, the stock of Grill Splendour Services Ltd (Birdy’s) has been admitted to trade in the ST category. The ST category is specifically for the SME Emerge segment of the NSE 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 Grill Splendour Services Ltd (Birdy’s) on listing day

On Day-1 of listing i.e., on 23rd April 2024, Grill Splendour Services Ltd (Birdy’s) touched a high of ₹127.35 per share on the NSE and a low of ₹120 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 well above the lower circuit of the day and tad below the listing price (at the issue price). Between these two extreme prices, the stock was relatively volatile and eventually closed at the upper circuit price of the day. In fact, the stock can be said to have enjoyed a strong listing despite the Nifty and Sensex closing in the positive after a long, hard, and volatile day. The stock of Grill Splendour Services Ltd (Birdy’s) closed at 5% upper circuit on top of a modest premium listing on the NSE.

During the trading day, the stock opened flat and even dipped below the listing price, but stayed clear of the lower circuit price of the day. However, it later recovered to bounce back to close at the upper circuit. In terms of the circuit filter limits, the stock of Grill Splendour Services Ltd (Birdy’s) had an upper circuit filter limit of ₹127.35 and a lower circuit band limit of ₹115.25. The stock closed the day 6.13% above the IPO issue price of ₹120 per share and it also closed 5% above the listing price of the day at ₹121.30 per share. During the day, the stock of Grill Splendour Services Ltd (Birdy’s) hit the upper circuit and stayed locked in the upper circuit for most part of the day. However, it had first dipped tad below the listing price but stayed well clear of the lower circuit price of the day. The stock closed strong at the upper circuit with unmet buy quantity of 27,600 shares and no sellers in the counter. For the SME IPOs, 5% is the upper limit and also the lower circuit on the listing price.

Robust volumes for Grill Splendour Services Ltd (Birdy’s) on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Grill Splendour Services Ltd (Birdy’s) stock traded a total of 7.69 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹948 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 in the second half, although the sellers were visible in the first half of the trading session; although buyers dominated the second half of trading. That also led the stock to close with pending buy orders of 27,600 shares (unmet) at the end of the trading session, although the price was very volatile during the day. It must be noted here that Grill Splendour Services Ltd (Birdy’s) 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, Grill Splendour Services Ltd (Birdy’s) had a market capitalization of ₹66.33 crore with free-float market cap of ₹42.03 crore. It has a total of 52.08 lakh shares as the issued capital of the company with a face value of ₹10 per share. As stated earlier, since the trading is on the T2T segment, the entire volume of 7.69 lakh shares during the day is accounted by delivery trades only, barring some error trade exceptions in the market. The stock trades on the NSE SME segment under the trading code (BIRDYS) and will be available in the demat account under ISIN code (INE0PC901019).

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. Grill Splendour Services Ltd (Birdy’s) had a market cap of ₹66.33 crore and the issue size was ₹16.47 crore. Therefore, the Market cap contribution ratio of the IPO works out to 4.03 times; which is at par with 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.