Inspire Films IPO Listed at 13.56% higher

Premium listing for Inspire Films IPO, then closes higher

Inspire Films Ltd had a moderate to strong listing on 05th October 2023, listing at a premium of 13.56% on the NSE SME segment, and subsequently closing the day sharply higher even compared to the listing price of the IPO. Of course, the stock closed comfortably above the IPO issue price and also well above the IPO listing price for the day. Overall, there was a sharp jump in the markets as the Nifty closed 110 points in the green while the Sensex closed 406 points higher for the day. The strength in the market was largely on account of some value buying at lower levels after several days of correction in the market. The Nifty closed the day above the 19,500 support level.

With subscription of 180.41X for the retail portion, 25.27X for the QIB portion and 147.16X for the HNI / NII portion; the overall subscription was relatively robust at 129.08X; which is well above the median for the SME IPO segment. The IPO was a book building issue in the price band of ₹56 to ₹59 per share and the price discovery happened at the upper end of the band at ₹59 per share; which was not surprising considering the robust subscription response to the IPO. The stock listed at a strong premium of 13.56% to the issue price, and in that it was helped along the way by a strong performance by the Nifty and the Sensex. However, subsequently, the stock gained further to close a full 4.78% above the listing price also. Here is the story of the IPO listing of Inspire Films Ltd on 05th October 2023.

Stock closes Day-1 sharply higher, after a moderate to strong start

Here is the pre-open price discovery for the Inspire Films IPO on the NSE.

Data Source: NSE

The SME IPO of Inspire Films Ltd was priced at ₹59 per share, at the upper end of the IPO price band. On 05th October 2023, the stock of Inspire Films Ltd listed on the NSE at a price of ₹67 per share, a premium of 13.56% over the IPO issue price of ₹59 per share. However, the stock did spike higher and eventually it closed the day at a price of ₹70.20 which is 18.98% above the IPO issue price of ͭ₹59 per share and also higher by 4.78% compared to the listing price of the stock at ₹67 per share on the first day of listing. In a nutshell, the stock of Inspire Films Ltd had closed the day strongly above the listing price, although well above the IPO issue price on 05th October 2023. 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. While the stock of Inspire Films Ltd touched the upper circuit on 05th October 2023, it could not sustain and trended slightly lower to close tad the day at ₹70.20 per share, which is just a tad below the upper circuit price. The opening price of the day was somewhere around the midpoint between the high price and the low price day, but the closing price of the day actually turned out to be very close to the high point of the day. This, on a day, when the stock gyrated between the upper circuit price and the lower circuit price before closing very near to the upper circuit price of the day on 05th October 2023.

How prices traversed for Inspire Films IPO on listing day

On Day-1 of listing i.e., on 05th October 2023, Inspire Films Ltd touched a high of ₹70.35 on the NSE and a low of ₹64.20 per share. The high price of the day was very close to the 5% upper circuit of the day and the opening listing price of the day actually turned to be the midpoint between the high price and the low price of the day. The stock effectively attempted circuit filters on both sides but eventually the bias was towards the upper circuit price for the day. The closing price of the day, was marginally lower than the high price of the day but the close does not reveal the massive gyrations in the stock during the day. On listing day, 5% is the maximum that the SME IPO stock is allowed to move in the day, either ways. That is both in terms of upper circuit and the lower circuit. In fact, the stock enjoyed a strong listing but closed marginally below the high price on a day when the Nifty was up 110 points and the Sensex was up about 406 points. 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 Inspire Films IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Inspire Films Ltd stock traded a total of 16.20 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹1,099.33 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, but pressure also coming in at the higher levels. That also led the stock to close on 05th October 2023, very close to the upper circuit band price for the day and at the close of the day there were 4,000 share pending quantity in the buy column. It must be noted here that Inspire Films 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 and there is no speculative trading component in the trading for the day.

At the close of Day-1 of listing, Inspire Films Ltd had a market capitalization of ₹95.54 crore with free-float market cap of ₹29.45 crore. It has a total of 136.09 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 16.20 lakh shares during the day is accounted for only by delivery trades only, barring some market trade exceptions.