Innova Captab IPO Lists 0.92% higher, then hits 20% upper circuit

Innova Captab Ltd lists almost flat, but closes at 20% upper circuit

Innova Captab IPO had a very flat listing on 29th December 2023, listing at a modest premium of 0.92% on the NSE but on top of that managed to hit the 20% upper circuit. The stock of Innova Captab Ltd closed the day at ₹542.50 per share, a premium of 20% over the listing price of ₹452.10 per share and a premium of 21.09% over the IPO price of ₹448 per share. Certainly, the IPO allottees of Innova Captab Ltd would be laughing all the way to the bank at the close of the first day of listing of the stock. The pattern was exactly similar on the BSE also, although the stock just fell short of the upper circuit. On the Bombay Stock Exchange (BSE), the stock of Innova Captab IPO opened at ₹456.10 per share, a premium of 1.81% over the IPO issue price of ₹448 per share. For the day, the stock closed on the BSE at ₹545.15, an overall gain of 19.52% over the IPO listing price of ₹456.10 per share and a premium of 21.69% over the issue price of ₹448 per share.  On the NSE, the stock of Innova Captab Ltd closed the listing day at the upper circuit, or the maximum permissible limit. On the BSE, it was just tad short of the upper circuit.

While the closing price of Innova Captab Ltd on 29th December 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed comfortably above the listing price on the BSE and also on the NSE. For the day, the Nifty closed 47 points lower while the Sensex closed 170 points lower. On both the exchanges, it was more of an index cooling on the last day of the year after a very frantic rally in the last few months. However, the market correction had little impact on the stock movement of Innova Captab Ltd as it stayed locked in the upper circuit for better part of the day.

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 55.26X  overall and QIB subscription was at 116.73X. In addition, the retail portion had got subscribed 17.15X in the IPO while the HNI / NII portion also got a healthy subscription of 64.95X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed around 20% higher over the issue price of the IPO, hitting the upper circuit of 20% on the NSE and almost hitting the upper circuit on the BSE.

The IPO price was fixed at the upper end of the band at ₹448 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹426 to ₹448 per share. On 29th December 2023, the stock of Innova Captab Ltd listed on the NSE at a price of ₹452.10 per share, a modest premium of 0.92% over the IPO issue price of ₹448 per share. On the BSE also, the stock listed at ₹456.10, a premium of 1.81% over the IPO issue price of ₹448 per share. Here is the Innova Captab Ltd listing story on 29th December 2023.

How the stock of Innova Captab Ltd closed on both exchanges

On the NSE, Innova Captab IPO closed on 29th December 2023 at a price of ₹542.50 per share. That is a first day closing premium of 21.09% on the issue price of ₹448 and also a premium of 20% on the listing price of ₹452.10 per share. In fact, the listing price turned out to be exactly the low price of the day on the NSE and the stock traded for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹545.15. That represents a first day closing premium of 21.69% above the IPO issue price and also a premium of 19.52% above the listing price on the BSE at ₹156.10 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, never going below the listing price, and eventually closing at the upper circuit of the day. In fact, the opening price turned out to be the low price of the day on the NSE and very close to the low price on the BSE. The high price of the day on both the stock exchanges on 29th December 2023 was the maximum  upper circuit price or near to it, which also happened to be the closing price of the stock on Friday. In fact, on the NSE, the stock closed with open buying quantity of 8,004 shares, showing a lot of pent up demand for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Innova Captab Ltd 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 29th December 2023. On Day-1 of listing, Innova Captab Ltd touched a high of ₹542.50 per share on the NSE and a low of ₹452.10 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of Innova Captab Ltd closed exactly at the high price of the day, which is also the upper circuit for the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Innova Captab Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the NSE, the upper circuit price was ₹542.50 per share while the lower circuit price was ₹361.70 per share. During the day, the high price of the day at ₹542.50 was exactly the upper band price while the low price of the day at ₹452.10 per share was well above the lower band price for the day at ₹361.70 per share. On Day-1 of listing, the Innova Captab Ltd stock traded a total of 154.97 lakh shares on NSE amounting to value of ₹782.55 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders of 8,004 shares on the NSE.

Price volume story of Innova Captab Ltd on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 29th December 2023. On Day-1 of listing, Innova Captab Ltd touched a high of ₹547.30 per share on the BSE and a low of ₹452 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was just below the IPO opening price, the stock of Innova Captab Ltd closed slightly below the high price of the day, which is also the upper circuit for the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Innova Captab Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹547.30 per share while the lower circuit price was ₹364.90 per share. During the day, the high price of the day at ₹547.30 was exactly the upper band price while the low price of the day at ₹452 per share was well above the lower band price for the day at ₹364.90 per share. On Day-1 of listing, the Innova Captab Ltd stock traded a total of 29.38 lakh shares on BSE amounting to value of ₹155.08 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders on the BSE also.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with very little hint of any profit booking even by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 154.97 lakh shares traded during the first day of trading, the deliverable quantity represented 65.95 lakh shares or a deliverable percentage of 42.56% on the NSE, which is definitely lower than the routine listing day median.

That shows a lot of speculative trading action in the counter on the first day of trading. Even on the BSE, out of the total 29.38 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 13.24 lakh shares representing total deliverable percentage of 45.08%, which is slightly higher than the NSE, but almost at par with the typical listing day median. On the BSE also, there was a lot of speculative trading volumes visible in the counter. 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 also.

At the close of Day-1 of listing, Innova Captab Ltd had a market capitalization of ₹3,119.62 crore with free-float market cap of ₹561.53 crore. Innova Captab Ltd has issued capital of 572.25 lakh shares with a par value of ₹10 per share.