Shree OSFM E-Mobility IPO Lists flat, then hits 5% upper circuit

Flat listing for Shree OSFM E-Mobility Ltd, then upper circuit

Shree OSFM E-Mobility IPO had a flat listing on 21st December 2023, listing exactly at the issue price of ₹65 per share. 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 21st December 2023. What also favoured the performance of the stock was the market support with the Nifty and the Sensex gaining sharply in the second half of the day. On 21st December 2023, the Nifty closed 105 points higher while the Sensex closed 359 points higher. In the last few days, the Nifty has been volatile but has managed to hold the 21,000 mark during the week and that is what matters to the market. Today, the Nifty closed above the 21,250 mark. The strength in the Nifty and the Sensex is on the back of follow-up buying in Indian markets after the Fed held status quo on rates last week and the bond yield sin the US and the dollar index fell sharply thereafter. This is especially relevant after the markets had corrected very sharply on Wednesday on the back of JN.1 virus fears.

Subscription and price performance of Shree OSFM E-Mobility Ltd on listing day

Let us now turn to the subscription story of Shree OSFM E-Mobility IPO. With modest subscription of 9.30X for the retail portion, and 6.82 for the HNI / NII portion; the overall subscription was extremely modest at 8.52X. The IPO was a fixed price IPO issue with the IPO price fixed at ₹65 per share. Being a fixed price IPO, there was no question of any impact of the subscription on the pricing. The stock listed flat at ₹65 per share, exactly at the IPO issue price. 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 improving market sentiments. The subscription normally impacts the price discovery in book building issues and the listing price. The strong subscription had a positive impact on bounce in the stock. On the day of listing, the stock managed to hold gains despite a flat opening and close at the upper circuit for the day in a market that was volatile, but bounced in the second half of the day.

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

Here is the pre-open price discovery for the SME IPO of Shree OSFM E-Mobility Ltd on the NSE.

Data Source: NSE

The SME IPO of Shree OSFM E-Mobility Ltd was priced at ₹65 per share, being fixed price IPO, to begin with. On 21st December 2023, the stock of Shree OSFM E-Mobility Ltd listed on the NSE at a price of ₹65, a flat listing exactly at the IPO issue price of ₹65. However, despite a volatile day post listing on 21st December 2023, the stock of Shree OSFM E-Mobility Ltd closed exactly at the upper circuit price of ₹68.25 per share. The stock had an upper circuit limit of ₹68.25 for the day and a lower circuit limit of ₹61.75 per share for the day. In the midst of the volatility in trading during the day, the stock hit the upper circuit but stayed put at the upper circuit price for the better part of the day. The closing price reflects a strong day of trading, because it closed at the upper circuit although it did dip below the listing price, with the low pricing being ₹63 per share, against the listing price of ₹65 per share. Also, the upper circuit comes on top of flat listing of the stock, which is all the more appreciable, considering that the Nifty and the Sensex had only made a sharp recovery in the second half of the day, while the stock was stuck in upper circuit since morning.

Being an SME IPO on the NSE, the stock of Shree OSFM E-Mobility Ltd 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 price. The opening price of the day was just above low price of the day, meaning the stock never really dipped too much below the listing price and spent most part of the day at the upper circuit, locked in. During the day, the stock hit the upper circuit but stayed well above the lower circuit but the close was exactly at the upper circuit price. In fact, the stock did briefly dip below the listing price but managed to show resilience and bounce back sharply from lower levels. On the NSE, the stock of Shree OSFM E-Mobility Ltd 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 Shree OSFM E-Mobility Ltd on listing day?

On Day-1 of listing i.e., on 21st December 2023, Shree OSFM E-Mobility Ltd touched a high of ₹68.25 per share on the NSE and a low of ₹63 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 below the opening price of the session, albeit above the lower circuit price. Between these two extreme 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 strong close for the day, despite a flat start and only a late rally in the markets.

For the whole trading day, the stock only briefly dipped below the listing price of ₹65 per share, with the low price of the day at ₹63 per share. In terms of the circuit filter limits, the stock of Shree OSFM E-Mobility Ltd had an upper circuit filter limit of ₹68.25 and a lower circuit band limit of ₹61.75. The stock closed the day 5% above the IPO issue price of ₹65 per share and it also closed 5% above the listing price of the day at ₹65 per share. During the day, the stock of Shree OSFM E-Mobility Ltd hit the upper circuit and stayed locked in the upper circuit for most part of the day. It did briefly dip below the listing price of the day, but did not really get close to the lower circuit price of the day. The stock closed strong at the upper circuit at the close of the day with 2,56,000 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.

Modest volumes for Shree OSFM E-Mobility Ltd on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Shree OSFM E-Mobility Ltd stock traded a total of 8.26 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹553.09 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 at the end of the trading session, although the price was hardly volatile during the day. It must be noted here that Shree OSFM E-Mobility 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, Shree OSFM E-Mobility Ltd had a market capitalization of ₹97.49 crore with free-float market cap of ₹43.01 crore. It has a total of 142.84 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 8.20 lakh shares during the day is accounted by delivery trades only, barring some market trade exceptions in the market. The stocks will appear in the demat account of shareholders under the ISIN Number (INE02S501018).