Kody Technolab IPO Listed at 6.25% higher, then hits upper circuit

Premium listing for Kody Technolab IPO, then hits upper circuit

Kody Technolab Ltd had a moderate to strong listing on 27th September 2023, listing at a premium of 6.25%, 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. Overall, there was a late bounce in the markets as the Nifty closed 52 points in the green after being in the red for most part of the day. The weakness in the market in early trades was largely on account of the sharp fall in the Nifty in recent days with the Nifty falling below the 20,000 and the 19,800 support levels fairly sharply, supported by volumes. With subscription of 53.56X for the retail portion and 41.17X for the HNI / NII portion; the overall subscription was extremely healthy at 51.55X. The IPO was a fixed price issue with the IPO priced at ₹160 per share. The stock listed at a moderate premium of 6.25%, even on a day when the market sentiments were volatile. However, subsequently, the stock the stock hit the upper circuit of 5%, helped by the market revival overall.

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

Here is the pre-open price discovery for the Kody Technolab IPO on the NSE.

Data Source: NSE

The SME IPO of Kody Technolab Ltd was priced at ₹160 via the fixed price methodology. On 27th September 2023, the stock of Kody Technolab Ltd listed on the NSE at a price of ₹170, a premium of 6.25% over the IPO issue price of ₹160. However, the stock got a further boost post listing and it closed the day at a price of ₹178.50 which is 11.56% above the IPO issue price of ͭ₹160 per share and a full 5% above the listing price of the stock at ₹170 per share on the first day of listing. In a nutshell, the stock of Kody Technolab 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 opening price actually turned out to be very close to the low price of the day, while the closing price was exactly at the high price of the day, being the 5% upper circuit limit for the day.

How prices traversed for Kody Technolab IPO on listing day

On Day-1 of listing i.e., on 27th September 2023, Kody Technolab IPO touched a high of ₹178.50 on the NSE and a low of ₹169 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 just a tad below the opening price of the 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. The late buying in the market also helped the stock to close at the upper circuit, despite the pressures of a volatile Nifty and Sensex during the day. The stock closed at the 5% upper circuit with 4,800 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.

Robust volumes for Kody Technolab IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Kody Technolab Ltd stock traded a total of 10.24 lakh shares on NSE SME segment amounting to value of ₹1,756.36 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 Kody Technolab 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.

At the close of Day-1 of listing, Kody Technolab Ltd had a market capitalization of ₹113.77 crore with free-float market cap of ₹30.62 crore. It has a total of 63.74 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 10.24 lakh shares during the day is accounted for only by delivery trades only.