Transteel Seating Technologies IPO Debuts 27% Above, Triggers Upper Circuit

Premium listing for Transteel Seating Technologies IPO, then upper circuit

Transteel Seating Technologies IPO had a very strong listing on 07th November 2023, listing at a premium of 27%. However, after a dull 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 price at the close of trading on 07th November 2023. What favoured the performance of the stock was the market support with the Nifty and the Sensex gaining sharply during the day. On 07th November 2023, the Nifty closed 181 points higher while the Sensex closed 595 points higher. In the last few days, the Nifty has been volatile but has managed to hold the 19,200 mark during the week. Today, the Nifty closed above the 19,400 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.

Let us now turn to the subscription story of Transteel Seating Technologies IPO. With hefty subscription of 39.82X for the retail portion, 12.15X for the QIB portion, and 122.88X for the HNI / NII portion; the overall subscription was extremely healthy at 49.21X. The IPO was a book built IPO issue with the IPO price brand in the range of ₹67 to ₹70 per share. Thanks to the robust response to the IPO, the stock price for the IPO got discovered at the upper band of ₹70 per share. The stock listed at a strongly positive premium of 27%,. However, subsequently, despite the stock opening to a tepid start for 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 the ability of the stock  in two ways. Firstly, it led to the stock price getting discovered at the upper end of the band at ₹70 per share and secondly on the day of listing, the stock managed to hold gains and close at the upper circuit for the day in a market that has seen a lot of volatility of late.

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

Here is the pre-open price discovery for the Transteel Seating Technologies IPO on the NSE.

Data Source: NSE

The SME IPO of Transteel Seating Technologies Ltd was priced at ₹70 per share, being the upper end of the book building price band. On 07th November 2023, the stock of Transteel Seating Technologies Ltd listed on the NSE at a price of ₹88.90, a premium of 27% over the IPO issue price of ₹70. However, despite a volatile day post listing on 07th November 2023, the stock of Transteel Seating Technologies Ltd closed exactly at the upper circuit price of ₹93.30 per share. The stock had an upper circuit limit of ₹93.30 for the day and a lower circuit limit of ₹84.45 for the day. In the midst of the volatility in trading during the day, the stock hit the upper circuit but stayed much above the lower circuit before eventually closing the day exactly at the upper circuit price. The closing price reflects a strong day of trading, because it closed at the upper circuit after dipping below the listing price during the early trades. Also, the upper circuit comes on top of a 27% premium listing of the stock, which is all the more appreciable, considering that the Nifty has been fairly volatile of late and the traders continue to be cautious in the current markets.

Being an SME IPO on the NSE, the stock of Transteel Seating Technologies 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 tad above the low price of the day. 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. On the NSE, the stock of Transteel Seating Technologies 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 Transteel Seating Technologies IPO on listing day

On Day-1 of listing i.e., on 07th November 2023, Transteel Seating Technologies Ltd touched a high of ₹93.30 per share on the NSE and a low of ₹86.10 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 tad below the opening price of the session. 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 and largely supported by a 119 points rally in the Nifty and a 595 points rally in the Sensex.

For the better part of the day, the stock stayed above the IPO issue price at most points of time although it hovered below the listing price of the day on several occasions, even getting a little close to the lower circuit in the process. In terms of the circuit filter limits, the stock of Transteel Seating Technologies Ltd had an upper circuit filter limit of ₹93.30 and a lower circuit band limit of ₹86.45. The stock closed the day 33.29% above the IPO issue price of ₹70 per share and it also closed 5% above the listing price of the day at ₹88.90 per share. During the day, the stock of Transteel Seating Technologies Ltd hit the upper circuit and got close to the lower circuit before closing exactly at the upper circuit price for the day. The stock closed strong at the upper circuit at the close of the day with 20,000 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.

Robust volumes for Transteel Seating Technologies IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Transteel Seating Technologies Ltd stock traded a total of 28.62 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹2,575.80 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 volatile during the day. It must be noted here that Transteel Seating 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, Transteel Seating Technologies Ltd had a market capitalization of ₹188.27 crore with free-float market cap of ₹86.93 crore. It has a total of 201.79 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 28.62 lakh shares during the day is accounted by delivery trades only, barring some market trade exceptions in the market.