Tridhya Tech IPO lists flat but closes at Upper Circuit

Tridhya Tech IPO had a flat listing on 13th July 2023, listing exactly at the IPO price but the stock closed at the upper circuit for the day. After a tepid start, the stock bounced and closed at the upper circuit for the day. This was amidst 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 temporary resistance for the equity markets. The flat listing of Tridhya Tech Ltd was despite the very strong subscriptions and the rather comfortable levels of grey market premium on the stock. In fact, the GMP of Tridhya Tech IPO GMP had remained in the range of ₹4 to ₹5 in the last few days; a clear indication that the listing would be at a premium, even if marginal. Eventually, that is what really did happen.

Tridhya Tech IPO opened absolutely flat but showed a lot of strength during the day, and closed above the listing price as well as the issue price on the first day of trading on the NSE. Being an NSE SME IPO, it is only traded on the SME segment of NSE. Tridhya Tech Ltd opened absolutely flat and exactly at the IPO price of ₹42 per share but the opening price turned out to be the low price for the day while the upper circuit price turned out to be the closing price of the day. With subscription of 67.62X for the retail portion, 181.72X for the HNI / NII portion and 15.62X for the QIB portion; the overall subscription was quite healthy at 72.38X. The subscription numbers were so strong that it allowed the stock to close at the upper circuit on the day of listing despite a tepid to flat start to trading.

The SME IPO of Tridhya Tech Ltd was priced at the upper band price of Rs42 via the book building method. On 13th July 2023, the stock of Tridhya Tech Ltd listed on the NSE at a price of Rs42, which is exactly the IPO issue price of the stock. However, the stock bounced sharply from lower levels and it closed the day at a price of Rs44.10, which is 5% above the IPO price as well as 5% above the listing price of the stock on the first day of listing. In a nutshell, the stock of Tridhya Tech Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers. The upper 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 low price of the day.

On Day-1 of listing i.e., on 13th July 2023, Tridhya Tech Ltd touched a high of Rs44.10 on the NSE and a low of Rs42 per share. The opening price turned out to be the low point while the stock closed at the high point of the day. Incidentally, the closing price also represented the 5% upper circuit price of the stock for the day, which is the maximum that the SME IPO stock is allowed to move in the day. What is truly appreciable is that the stock closed strong despite the overall Nifty facing pressure in the range of 19,400 to 19,500 and the stock of Tridhya Tech opening flat despite a very strong subscription base. The stock of Tridhya Tech ltd closed at the 5% upper circuit with 48,000 buy quantity and no sellers. For the SME IPOs, 5% is the upper limit over 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 Tridhya Tech Ltd stock traded a total of 29.52 lakh shares on NSE SME segment amounting to value of Rs1,245.45 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 helped the stock to close at the upper end of the circuit filter. It must be noted here that Tridhya Tech 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, Tridhya Tech Ltd had a market capitalization of Rs102.70 crore with free-float market cap of Rs21.57 crore. It has a total of 232.88 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 29.52 lakh shares during the day is accounted for only by delivery trades.

Tridhya Tech Ltd, is an SME IPO on the NSE which had opened for subscription on 30th June 2023. The company, Tridhya Tech Ltd, was incorporated in the year 2018 to develop software products and solutions for clients. Tridhya provides IT consulting services to sectors that include specific verticals like ecommerce, real estate, transport, logistics, insurance etc. In the realm of ecommerce, the company also provides enterprise content management solutions, bespoke web management, development of mobile apps, API development, support, front end design, graphical user interface (GUI) etc. It actually offers a 360 degree digital solution for web needs. 

Tridhya Tech Ltd handles the complete life cycle of the software solution and takes ownership from start to finish. This includes the product concept, product design, architecture, coding, testing and even deploying the same in the test environment apar from making in operational in the real live environment. Tridhya Tech Ltd had recently acquired Concentric IT Services Private Limited, Basic Root Technologies Private Limited, and Vedity Software Private Limited. Tridhya also has a strong global presence with clients located across geographically spread out regions like Australia, Canada, Estonia, France, Germany, Israel, Italy, Japan, Mauritius, the Netherlands, Qatar, Singapore, UK, UAE, the US etc. Tridhya Tech Ltd also has a very strong domestic franchise in India.