Synoptics Technologies IPO Stock hits 5% Lower Circuit, loses ground

Synoptics Technologies IPO had a flat and tepid listing on 13th July 2023, listing just ₹1 above the IPO price but closing at the 5% lower circuit as the pressure on the stock built up. This was despite the fact that the markets were generally positive in the day. However, the Nifty continued to trade in the range of 19,400 to 19,500 and that range has become a sort of resistance for the markets. However, the weak listing of Synoptics was in good measure due to the tepid subscriptions and the very low levels of GMP indicated by the stock. In fact, Synoptics Technologies IPO GMP had remained in the negative over the last few days and that was a clear indication that the listing would come under pressure. Eventually, that is what really did happen.

The stock of Synoptics Technologies IPO hardly showed any strength on the day of listing. It listed just ₹1 above the IPO price of ₹237 but then lost ground and closed the day at the lower circuit of 5%, which is the limit that SME stocks are allowed to gyrate on the day of listing. Being an NSE SME IPO, it is only traded on the SME segment of NSE. Synoptics Technologies Ltd opened just ₹1 higher than the IPO price and the opening price turned out to be the high price point for the day. With subscription of 2.54X for the retail portion and 2.58X for the HNI / NII portion; the overall subscription was quite tepid at 2.66X. The subscription numbers were very moderate that it allowed the stock to close at the lower circuit for the day despite a marginally positive listing.

Synoptics Technologies IPO was priced at ₹237 via fixed price format. On 13th July 2023, the stock of Synoptics Technologies SME IPO listed on the NSE at a price of ₹238, a premium of just ₹1 per share of 0.42% on the IPO issue price of ₹237. You can almost call it a flat opening. However, the stock faced pressure during the day from the higher levels and it closed the day at a price of ₹226.10, which is -4.6% below the IPO price and -5% below the listing price of the stock on the first day of listing. In a nutshell, the stock of Synoptics Technologies Ltd had closed the day exactly at the lower circuit price for the stock of 5% with only sellers and no buyers. 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 the high price of the day. Here is a quick snapshot of the pre-IPO pricing on the day of listing on the NSE.

Data Source: NSE

On Day-1 of listing i.e., on 13th July 2023, Synoptics Technologies Ltd touched a high of ₹238 on the NSE and a low of ₹226.10 per share. The opening price turned out to be the high price for the day while the stock closed at the low price of the day. Incidentally, the closing price also represented the 5% lower circuit price of the stock for the day, which is the maximum that the SME IPO stock is allowed to move in the day. The stock came under a lot of pressure on the listing date due to the weak subscription and the negative cues coming from the GMP ahead of the listing of the IPO. The stock closed at the 5% lower circuit with 24,600 sell quantity and no buyers. For the SME IPOs, 5% is the upper limit and the lower limit on the listing price on the day of listing.

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Synoptics Technologies Ltd stock traded a total of 10.18 lakh shares on NSE SME segment amounting to value of ₹2,349.70 lakhs on the first day.  The order book during the day showed a lot of selling with the sell orders consistently exceeding the buy orders at any point of time. That also led the stock to close at the lower end of the circuit filter. It must be noted here that Synoptics 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.

At the close of Day-1 of listing, Synoptics Technologies Ltd had a market capitalization of ₹191.73 crore with free-float market cap of ₹51.77 crore. It has a total of 84.80 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 84.80 lakh shares during the day is accounted for only by delivery trades.

Synoptics Technologies Ltd, is an SME IPO on the NSE which opened for subscription on 30th June 2023. Synoptics Technologies Ltd, is a fixed price SME IPO on the NSE priced at ₹237 per share. The company, Synoptics Technologies Ltd, was incorporated in 2008 to provide specialized solutions in very niche areas like IT infrastructure, branch connectivity, network implementation, network support, route set-up, switch set-up, configuration etc. Synoptics Technologies Ltd also designs solutions for clients looking to put their applications on the cloud, which includes cloud migration and cloud set-up.

Essentially, Synoptics Technologies helps small businesses, and the Government in their Digital journey. It has a premium B2B client list which includes names like TATA Communications, BOB Financial Services, Blue Dart Express, Lifestyle International, Shoppers Stop Limited, H&M Retail, GIC Housing Finance, Motilal Oswal Financial Services etc. It has also recently signed up to become the authorized private LTE partner for 5G services nationally, which is a premium offering. The company is headquartered in Mumbai and has 17 regional offices spread across.