Committed Cargo Care IPO Listed at 6.49% premium, hits upper circuit

Premium listing for Committed Cargo Care IPO, then hits upper circuit

Committed Cargo Care Ltd had a modestly strong listing on 18th October 2023, listing at a premium of 6.49%, 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. Overall, there was a sharp fall in the markets as the Nifty closed 140 points in the red while the Sensex closed 551 points lower. The weakness in the market was largely on account of the sharp sell-off in the Nifty amidst aggressive profit booking. The worsening war situation in Israel also led to a sharp sell-off in the marks as traders and investors preferred to stay light in these tumultuous times amidst rising geopolitical risks.

With subscription of 78.73X for the retail portion, and 94.20X for the QIB portion; the overall subscription was extremely healthy at 87.78X. The IPO was a fixed price issue with the IPO price already fixed at ₹77 per share. The stock listed at a modestly positive premium of 6.49%, even on a day when the market sentiments were extremely weak overall. However, subsequently, the stock not only held the gains but also hit the upper circuit of 5%, despite the fall in the market overall. This was reflective of strength in the broader market sentiments. The subscription normally impacts the price discovery in book building issues and the listing price. While this was a fixed price issue, the strong subscription had a positive impact on the ability of the stock to hold gains in a market that was falling sharply.

Stock closes Day-1 at 5% upper circuit, after modestly positive start

Here is the pre-open price discovery for the Committed Cargo Care IPO on the NSE.

Data Source: NSE

The SME IPO of Committed Cargo Care Ltd was priced at ₹77 per share, via the fixed IPO pricing method. On 18th October 2023, the stock of Committed Cargo Care Ltd listed on the NSE at a price of ₹82, a premium of 6.49% over the IPO issue price of ₹77. However, the stock got a further boost post listing and it closed the day at a price of ₹86.10 which is 11.82% above the IPO issue price of ͭ₹77 per share and a full 5% above the listing price of the stock at ₹82 per share on the first day of listing. In a nutshell, the stock of Committed Cargo Care 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 opening price actually turned out to be the low price of the day, while the closing price was exactly at the high price of the day, being the 5% upper circuit limit for the day. On the NSE, the stock of Committed Cargo Care 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 Committed Cargo Care IPO on listing day

On Day-1 of listing i.e., on 18th October 2023, Committed Cargo Care Ltd touched a high of ₹86.10 on the NSE and a low of ₹82 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 exactly at the opening price of the stock for 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. In fact, the stock enjoyed a strong listing and a close at the upper circuit on a day when the Nifty was down 140 points and the Sensex was down about 551 points.

Through the day, the stock stayed above the IPO issue price at any point of time. In terms of the circuit filter limits, the stock of Committed Cargo Care Ltd had an upper circuit filter limit of ₹86.10 and a lower circuit band limit of ₹77.90. However, while the stock closed at the upper circuit band, it did not go below the listing price of ₹82 per share at any point during the day. The stock closed at the 5% upper circuit with 12,800 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 Committed Cargo Care IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Committed Cargo Care Ltd stock traded a total of 16.304 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹1,375.73 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 Committed Cargo Care 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, Committed Cargo Care Ltd had a market capitalization of ₹93.07 crore with free-float market cap of ₹29.20 crore. It has a total of 108.096 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 16.304 lakh shares during the day is accounted by delivery trades only, barring some market trade exceptions in the market.