Blockbuster Debut! Vinyas Innovative Technologies IPO Listed 100% higher

Vinyas Innovative Technologies Ltd doubles on listing, then hits upper circuit

Vinyas Innovative Technologies Ltd had a strong listing on 06th October 2023, listing at a premium of 100%, and subsequently hitting the 5% upper circuit on the listing price. Of course, the stock closed comfortably above the IPO issue price and the IPO listing price for the day. For the day, the Nifty closed 108 points higher while the Sensex closed with gains of 364 points. Both the Nifty and the Sensex have now seen two consecutive days of gains and this performance by Vinyas Innovative Technologies Ltd on the day of listing was largely helped by the robustness in the market sentiments overall.

With subscription of 21.27X for the retail portion, 42.74X for the QIB portion and 95.16X for the HNI / NII portion; the overall subscription was extremely healthy at 43.24X. The IPO was a book building issue in the price band of ₹162 to ₹165 per share and the price discovery happened at the upper end of the band at ₹165 per share. The stock listed at a strong premium of 100%, and the positive sentiments in the market along with sustained dovishness in the monetary policy only helped the cause. However, subsequently, the stock not only held the gains but also hit the upper circuit of 5%, which showed added strength and momentum in the stock after such a robust and premium listing of 100% on opening.

Stock closes Day-1 at 5% upper circuit, after a 100% premium start

Here is the pre-open price discovery for the Vinyas Innovative Technologies IPO on the NSE.

Data Source: NSE

The SME IPO of Vinyas Innovative Technologies Ltd was priced at ₹165 per share, at the upper end of the IPO price band. On 06th October 2023, the stock of Vinyas Innovative Technologies Ltd listed on the NSE at a price of ₹330, a premium of 100% over the IPO issue price of ₹165. However, the stock got a further boost post listing and it closed the day at a price of ₹346.50 which is 110% above the IPO issue price of ͭ₹165 per share and a full 5% above the listing price of the stock at ₹330 per share on the first day of listing. In a nutshell, the stock of Vinyas Innovative Technologies Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers in the counter. 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 low price of the day was much lower at Rs313.50 compared to the opening listing price of Rs330. However, that did not deter the stock from bouncing sharply and touching the 5% upper circuit, which is where it closed for the day. Being an SME IPO stock, it is constrained by the 5% upper circuit limit for the day.

How prices traversed for Vinyas Innovative Technologies Ltd on listing day

On Day-1 of listing i.e., on 06th October 2023, Vinyas Innovative Technologies Ltd touched a high of ₹346.50 on the NSE and a low of ₹313.50 per share. The high price of the day was exactly the closing price of the stock while the stock low price of the day was well below the listing price. In fact, the stock was quite volatile during the day as it first hit the 5% lower circuit during the day, but later recovered to close at the 5% upper circuit of the day. The closing price of the day, or the high price of the day, also represents the upper circuit of 5%. That is the maximum that the SME IPO stock is allowed to move in the day, either ways and the stock moved the entire permissible range during the day. In fact, the stock enjoyed a strong listing and a close at the upper circuit on a day, but not without its share of gyrations and volatility during the day. This was also supported by the rally in the Nifty and the Sensex, which helped to boost the sentiments around the stock, apart from the positive vibes coming from the RBI monetary policy during the day. The stock closed at the 5% upper circuit with 11,200 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. Incidentally, the stock hit both extremes during the listing day.

Robust volumes for Vinyas Innovative Technologies IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Vinyas Innovative Technologies IPO stock traded a total of 15.816 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹5,217.70 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 at the upper end of the circuit filter. It must be noted here that Vinyas Innovative 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 only.

At the close of Day-1 of listing, Vinyas Innovative Technologies Ltd had a market capitalization of ₹436.06 crore with free-float market cap of ₹307.99 crore. It has a total of 125.85 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 15.816lakh shares during the day is accounted for only by delivery trades only, barring some market trade exceptions.