Infollion Research Services has bumper listing at 155% premium

Infollion Research Services Ltd had a bumper listing on 08th June 2023, listing at a sharp premium of 154.88%, but subsequently gave up some of the bumper gains towards the close of trade as the markets also wobbled in the second half of the trading day. The markets began strong in the morning after the RBI held repo rates at 6.5%, but concerns over a delayed monsoon and the impact on the Kharif output led to the Nifty closing nearly 91 points lower for the day. That had an impact on the stock in the second half, although it still closed at a very hefty premium for the day. Despite the sell-off in the markets, Infollion Research Services IPO managed triple digit listing day gains. For now, the headwinds like the inversion of the yield curve, the slowdown fears and the delayed monsoons are concerns in the market as they expect the inflation to spike once again. However, the stock was not too perturbed giving a bumper 3-digit gains on listing day.

Infollion Research Services IPO did show a lot of strength during the day, and closed well above the IPO price, although it did close below the listing price for the day. on the NSE. Being an NSE SME IPO, it is only traded on the SME segment of NSE. Infollion Research Services Ltd opened 154.88% higher and the opening price was at such a huge premium that the stock did face some pressure on listing. With subscription of 70.72X for the QIB portion, 264.10X for the retail portion and 560.71X for the HNI / NII portion; the overall subscription was extremely healthy at 279.24X. The subscription numbers were so strong that it allowed the stock to list at a huge premium and then sustain the premium post listing. Even after the correction, the stock held on to triple digit premium on listing day.

The SME IPO of Infollion Research Services Ltd had a price band of ₹80 to ₹82 and eventually the IPO was priced at Rs82 which is the upper end of the book built range. On 08th June 2023, the stock of Infollion Research Services Ltd listed on the NSE at a price of Rs209, a premium of 154.88% on the IPO issue price of Rs82. However, the stock gyrated sharply during the day and it closed the day at a price of Rs198.55, which is 142.13% above the IPO price but 5% below the listing price of the stock on the first day of listing. In a nutshell, the stock of Infollion Research Services Ltd had closed the day exactly at the lower circuit price for the stock of 5% with only sellers and no buyers. The lower circuit price on listing day is calculated on the listing price and not on the IPO price. The stock was fairly volatile during the day.

On Day-1 of listing i.e., on 08th June 2023, Infollion Research Services Ltd touched a high of Rs218 on the NSE and a low of Rs198.55 per share. The stock closed at the low point of the day. Incidentally, the closing price also represented the 5% lower 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 falling by over 91 points on 08th June 2023 and dipping below the psychological level of 18,700 on a closing basis for the listing day. The stock closed at the 5% lower circuit on opening price with 6,400 sell quantity and no buyers . For the SME IPOs, 5% is the lower limit on 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 Infollion Research Services Ltd stock traded a total of 9,71,200 (9.71 lakh) shares on NSE SME segment amounting to value of Rs2,014.85 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. It was only towards the close that there were a flurry of sell orders leading the stock about 5% lower. That also led the stock to close at the lower end of the circuit filter. It must be noted here that Infollion Research Services 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, Infollion Research Services Ltd had a market capitalization of Rs192.41 crore with free-float market cap of Rs38.48 crore. It has a total of 96.91 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, almost the entire volume of 9.71 lakh shares during the day is accounted for only by delivery trades.

Here is a quick background of the company. Infollion Research Services Ltd, the SME IPO on NSE opened for subscription on 29th May 2023. The company was incorporated in 2009 and offers a technology driven consulting market place. A lot of companies today need contingent hiring with the solutions pigeonholed to their needs and a solution that is relatively economical and yet actionable. That is where Infollion Research Services plays a catalytic role. The company operates in the B2B Human Cloud segment and has a large number of empanelled senior management talent, subject matter experts, and even seasoned independent professionals.

In short, Infollion Research Services is into providing a platform for workers or knowledge providers (popularly called gig workers) on one side and potential employers or hirers on the other side. The idea is to offer synergistic outcome that is economical and quick on delivery with actionable output. Infollion Research Services has a client base including top-tier consulting firms, hedge funds, private equity funds, and mid-tier Corporates. Broadly, Infollion offers 4 alternate models of engagement viz. calls, sit-ins, tours and pexpanel. These are often used across multiple levels. The IPO funds will be used to expand in the US and Europe as well as expanding visibility and technology development.