Vishnu Prakash R Punglia IPO lists at 66.67% premium, falls later

Robust listing, but fails to sustain gains

Vishnu Prakash R Punglia IPO had a very robust listing on 5-September-2023, listing at a smart premium of 66.67%, but then the stock, fell from the highs of the day. While the closing price on 05th September 2023 was below the listing price of the day, it was still well above the issue price of the IPO. In a sense the stock opened strong but just failed to sustain the rally and lost more than 12% from the listing price of the day.

What is more interesting is the fact that the strong listing performance by Vishnu Prakash R Punglia Ltd was assisted in early trades by a strong market. However, in the second half the markets also faced selling pressure and that also showed on the performance of the stock of Vishnu Prakash R Punglia Ltd as it closed more than 12% below the listing price of the day.

Despite the strong opening, the stock failed to sustain the momentum during the day and the opening price ended up being the high price of the day while the stock closed very near to the low price of the day, showing a lot of weakness in trading through the day. The stock had seen strong subscription in the IPO.

The subscription was 87.82X  overall and QIB subscription was at a healthy 171.69X. Hence the listing was expected to be extremely strong. However, while the listing was strong, the performance strength got dissipated during the day as the stock fell sharply from the listing price, losing more than 12% by close over the listing price. In a sense, the markets came under pressure as the Nifty made a strong start but closed with gains of just 46 points. That sell-off had an impact on the performance of the stock too. Here is the Vishnu Prakash R Punglia IPO listing story on 5-September-2023.

Vishnu Prakash R Punglia IPO subscription and pricing details

Vishnu Prakash R Punglia IPO price was fixed at the upper end of the band at ₹99 which was anyways along expected lines considering the extremely strong 87.82X overall subscription and the 171.69X QIB subscription in the IPO. In addition, the retail portion had got subscribed 32.01X in the IPO while the HNI / NII portion also got a healthy subscription of 111.03X. The price band for the IPO was ₹94 to ₹99. On 05th September 2023, the stock of Vishnu Prakash R Punglia Ltd listed on the NSE at a price of ₹165, a very strong premium of 66.67% over the IPO issue price of ₹99. On the BSE also, the stock listed at ₹163.30, a premium of just 64.95% over the IPO issue price of ₹99 per share.

How the stock of Vishnu Prakash R Punglia IPO closed on both exchanges

On the NSE, Vishnu Prakash R Punglia Ltd closed on 05th September 2023 at a price of ₹144.80. That is a first day closing premium of 46.26% on the issue price of ₹99 but a sharp discount of -12.24% on the listing price of ₹165. In fact, the listing price turned out to be the high price of the day and the stock traded for the entire trading day below the opening listing price and actually closed the day very near to the low price of the day.

On the BSE, the stock closed at ₹145.93. That represents a first day closing premium of 47.40% above the IPO issue price of ₹99 per share but a steep discount of -10.64% below the listing price on the BSE. On both the exchanges, the stock listed strongly above the IPO issue price but failed to sustain the opening gains and fell in double digits from the opening listing price. In fact, the opening price almost turned out to be the high price of the day on both the exchanges.

On the NSE, the opening price represented the high price of the day while on the BSE, the high price of the day was just marginally above the opening price of the day. Clearly, the strong performance of the markets also had its impact on the stock on 05th September 2023 allowing the stock to close the day well above the issue price of the IPO, albeit at a discount to the listing price of the day. In short, the late fall in the market allowed the stock to lose most of its morning gains. The low price of the day was very close to the closing price on both the exchanges.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 05th September 2023. On Day-1 of listing, Vishnu Prakash R Punglia Ltd touched a high of ₹165 on the NSE and a low of ₹144. The premium to the IPO issue price sustained through the day, although the stock did not manage to hold above the listing price of the day. In fact, the entire trading session was almost spent below the listing price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs.

If you look at the range of prices, the stock opening price turned out to be the high point of the day while the closing price of the day was just a tad above the low price of the day, reflecting the sentiments on the counter during the trading day. The strong post-listing performance of the IPO stock was supported by robust markets with the Nifty gaining sharply during the day.

However, as the Nifty gave up gains post the second half, that also had an impact on the performance of the stock as it saw selling pressure build up, pushing the stock lower. On Day-1 of listing, the Vishnu Prakash R Punglia Ltd stock traded a total of 334.22 lakh shares on NSE amounting to value of ₹508.49 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the sellers. In fact, the stock closed the day with pending sell orders of 91,799 shares on the NSE.

Price volume story on the BSE

Let us now turn to how the stock traversed on the Bombay Stock Exchange (BSE) on 05th September On Day-1 of listing, Vishnu Prakash R Punglia Ltd touched a high of ₹164.45 on the BSE and a low of ₹144. The premium to the IPO issue price sustained through the day, although the stock did not manage to hold above the listing price of the day. In fact, the entire trading session was almost spent below the listing price of the day. Mainboard IPOs do not have any upper or lower circuit of 5%, unlike SME IPOs.

If you look at the range of prices, the stock opening price almost turned out to be the high point of the day while the closing price of the day was just a tad above the low price of the day, reflecting the sentiments on the counter on the day of listing. The strong post-listing performance of the IPO stock was supported by robust markets with the Sensex gaining sharply during the day.

However, as the Sensex gave up gains post the second half, that also had an impact on the performance of the stock on the BSE as it saw selling pressure build up, pushing the stock lower. On Day-1 of listing, the Vishnu Prakash R Punglia Ltd stock traded a total of 24.42 lakh shares on BSE amounting to value of ₹36.96 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the sellers. In fact, the stock closed the day with pending sell orders on the BSE.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book showed a lot of strength in early trades, but through the day it was under pressure. The correction in the Nifty and the Sensex from higher levels in the second half of the day also pushed the stock lower at close. On the NSE, out of the total 334.22 lakh shares traded during the first day of trading, the deliverable quantity represented 164.73 lakh shares or a deliverable percentage of 51.79% on the NSE, which is above the routine listing day median.

That shows a lot of delivery action in the counter. Even on the BSE, out of the total 24.42 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 10.94 lakh shares representing total deliverable percentage of 44.80%, which is below the delivery action on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, Vishnu Prakash R Punglia Ltd had a market capitalization of ₹1,818.93 crore with free-float market cap of ₹327.41 crore. Vishnu Prakash R Punglia Ltd has issued capital of 12.4644 crore shares with a par value of ₹10 per share.