Jyoti CNC Automation IPO Lists 11.78% higher, surges further

Jyoti CNC Automation IPO lists at 11.78% premium, gains another 16.68%

Jyoti CNC Automation IPO had a relatively strong listing on 16th January 2024, listing at a smart premium of 11.78% on the NSE but on top of that managed gains of another 16.68% on the listing price. The stock of Jyoti CNC Automation Ltd closed the day at ₹431.70 per share, a premium of 16.68% over the listing price of ₹370 per share and a premium of 30.42% over the IPO price of ₹331 per share. Certainly, the IPO allottees of Jyoti CNC Automation 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 largely similar on the BSE also, although the stock just fell short of the upper circuit. On the Bombay Stock Exchange (BSE), the stock of Jyoti CNC Automation Ltd opened at ₹372 per share, a premium of 12.39% over the IPO issue price of ₹331 per share. For the day, the stock closed on the BSE at ₹433.15, an overall gain of 16.44% over the IPO listing price of ₹372 per share and a premium of 30.86% over the issue price of ₹331 per share.  On the NSE, the stock of Jyoti CNC Automation Ltd closed the listing day nearer to the upper circuit, or the maximum permissible limit. On the BSE also, it was below the upper circuit. While the stock did touch the upper circuit price on the NSE on listing day, the stock just fell short of upper circuit on the BSE.

While the closing price of Jyoti CNC Automation Ltd on 16th January 2024 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 65 points lower while the Sensex closed 199 points lower. On both the exchanges, it was more of an index cooling on the day after a very frantic rally in the last few months. However, the market correction had little impact on the stock movement of Jyoti CNC Automation Ltd as it stayed in the positive territory, even briefly touching upper circuit, during the day.

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 40.49X  overall and QIB subscription was at 46.37X. In addition, the retail portion had got subscribed 27.50X in the IPO while the HNI / NII portion also got a healthy subscription of 38.33X. 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 16.68% higher over the issue price of the IPO on the NSE, even briefly touching the upper circuit on the NSE and getting very close to the upper circuit on the BSE.

The IPO price was fixed at the upper end of the band at ₹331 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹315 to ₹331 per share. On 16th January 2024, the stock of Jyoti CNC Automation Ltd listed on the NSE at a price of ₹370 per share, a premium of 11.78% over the IPO issue price of ₹331 per share. On the BSE also, the stock listed at ₹372, a premium of 12.39% over the IPO issue price of ₹331 per share. Here is the Jyoti CNC Automation Ltd listing story on 16th January 2024.

How the stock of Jyoti CNC Automation Ltd closed on both exchanges

On the NSE, Jyoti CNC Automation Ltd closed on 16th January 2024 at a price of ₹431.70 per share. That is a first day closing premium of 30.42% on the issue price of ₹331 and also a premium of 16.68% on the listing price of ₹370 per share. In fact, the listing price turned out to be very near to 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 ₹433.15. That represents a first day closing premium of 30.86% above the IPO issue price and also a premium of 16.44% above the listing price on the BSE at ₹372 per share. Here also, the low price was very close to the opening listing price of the day.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, seldom going below the listing price, and eventually closing very close to the upper circuit of the day. In fact, the opening price turned out to be near the low price of the day on the NSE and also on the BSE. The high price of the day on both the stock exchanges on 16th January 2024 was very near to the maximum  upper circuit price, which also happened to be the closing price of the stock on Friday. However, there was some offloading pressure in the end  on the NSE, as the stock closed with open selling quantity of 79,438 shares with no buyers. Some late selling or offloading signals were available towards the close of the listing day on the NSE also.

Price volume story of Jyoti CNC Automation 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 16th January 2024. On Day-1 of listing, Jyoti CNC Automation Ltd touched a high of ₹444 per share on the NSE and a low of ₹368 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was very nearly to the IPO opening price, the stock of Jyoti CNC Automation Ltd closed very near to 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 Jyoti CNC Automation 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 ₹444 per share while the lower circuit price was ₹296 per share. During the day, the high price of the day at ₹444 was exactly the upper band price while the low price of the day at ₹368 per share which was well above the lower band price for the day at ₹296 per share. On Day-1 of listing, the Jyoti CNC Automation Ltd stock traded a total of 316.32 lakh shares on NSE amounting to value of ₹1,291.92 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 except towards the end of the trading session. That explains why the stock closed the day with pending sell orders of 79,438 shares on the NSE.

Price volume story of Jyoti CNC Automation Ltd on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 16th January 2024. On Day-1 of listing, Jyoti CNC Automation Ltd touched a high of ₹444.80 per share on the BSE and a low of ₹370.05 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was very nearly to the IPO opening price, the stock of Jyoti CNC Automation Ltd closed very near to the high price of the day, which is also very near to 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 Jyoti CNC Automation 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 ₹446.40 per share while the lower circuit price was ₹297.60 per share. During the day, the high price of the day at ₹444.80 was very close to upper band price while the low price of the day at ₹370.05 per share which was well above the lower band price for the day at ₹297.60 per share. On Day-1 of listing, the Jyoti CNC Automation Ltd stock traded a total of 17.31 lakh shares on BSE amounting to value of ₹71.15 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 except towards the end of the trading session. That explains why the stock closed the day with pending sell orders on the BSE also, albeit quite late in the day.

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 some hint of profit booking visible at 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 Tuesday. On the NSE, out of the total 316.32 lakh shares traded during the first day of trading, the deliverable quantity represented 128.09 lakh shares or a deliverable percentage of 40.49% 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 17.31 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 5.28 lakh shares representing total deliverable percentage of 30.50%, which is sharply lower than on the NSE, and also lower than 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, Jyoti CNC Automation Ltd had a market capitalization of ₹9,850.83 crore with free-float market cap of ₹689.56 crore. Jyoti CNC Automation Ltd has issued capital of 2,274.23 lakh shares with a par value of ₹2 per share.