Maitreya Medicare IPO Lists: 98.23% Premium, before Lower Circuit

Premium listing for Maitreya Medicare IPO, then lower circuit

Maitreya Medicare Ltd had a very strong listing on 07th November 2023, listing at a premium of 98.23%. However, after a very strong opening, the stock closed the day at the 5% lower circuit over the listing price. For the day, the stock closed comfortably above the IPO issue price but below the IPO price at the close of trading on 07th November 2023. What favoured the strong opening for the stock was the bumper listing, as we shall see subsequently. However, the Nifty and Sensex were tepid to weak during the day and that impacted the post listing stock performance. On 07th November 2023, the Nifty closed 5 points lower while the Sensex closed 16 points lower. In the last few days, the Nifty has been volatile but has managed to hold the 19,400 mark during the week. Today, the Nifty closed above the 19,400 mark, but only just. The weakness, or the tepidness, in the Nifty and Sensex on 07th November 2023, was more on account of the sharp rally in the last few days after the Fed announced status quo on rates.

Subscription levels, and how it impacted listing of Maitreya Medicare Ltd

Let us now turn to the subscription story of Maitreya Medicare Ltd. With hefty subscription of 509.40X for the retail portion, 85.41X for the QIB portion, and 744.03X for the HNI / NII portion; the overall subscription was extremely healthy at 446.79X. The IPO was a book built IPO issue with the IPO price brand in the range of ₹78 to ₹82 per share. Thanks to the robust response to the IPO, the stock price for the IPO got discovered at the upper band of ₹82 per share. The stock listed at a strongly positive premium of 98.23% on the NSE. However, subsequently, despite the stock opening with so much strength, it went on to close at the lower circuit of 5% on the listing price. This was reflective of pressure on the stock at higher levels, on a day when overall market sentiments were shaky. The subscription normally impacts the price discovery in book building issues and the listing price. The strong subscription had a positive impact on the ability of the stock  in two ways. Firstly, it led to the stock price getting discovered at the upper end of the band at ₹82 per share and secondly on the day of listing, the stock managed to open with bumper gains of 98.23%, although it did close at the 5% lower circuit on the listing price at the close of the day.

Stock closes Day-1 at lower circuit, after a bumper opening

Here is the pre-open price discovery for the SME IPO of Maitreya Medicare IPO on the NSE.

Data Source: NSE

The SME IPO of Maitreya Medicare Ltd was priced at ₹82 per share, being the upper end of the book building price band. On 07th November 2023, the stock of Maitreya Medicare Ltd listed on the NSE at a price of ₹162.55 per share, a premium of 98.23% over the IPO issue price of ₹82 per share. However, despite a volatile day post listing on 07th November 2023, the stock of Maitreya Medicare Ltd closed exactly at the lower circuit price of ₹154.45 per share. The stock had an upper circuit limit of ₹170.65 for the day and a lower circuit limit of ₹154.45 for the day. In the midst of the volatility in trading during the day, the stock tried getting close to the upper circuit with little success. However, the stock eventually closed the day exactly at the lower circuit price. The closing price reflects a mixed day of trading, because it closed at the lower circuit after a very strong opening showing gains of 98.23%. However, this lower circuit comes after 98.23% premium listing of the stock, which is understandable on a day when the Nifty and Sensex were extremely volatile.

Being an SME IPO on the NSE, the stock of Maitreya Medicare Ltd was subjected to 5% circuit filter on listing day and was also in the ST (trade to trade) segment. That means, only delivery trades are permitted on the stock. 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 of the day was at a huge premium to the issue price. During the day, the stock made attempts to hit the upper circuit but stayed well below the upper circuit but the close was exactly at the lower circuit price. On the NSE, the stock of Maitreya Medicare 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 Maitreya Medicare IPO on listing day

On Day-1 of listing i.e., on 07th November 2023, Maitreya Medicare Ltd touched a high of ₹164 per share on the NSE and a low of ₹154.45 per share. The high price of the day was well below the upper circuit filter limit price of ₹170.65 per share, but the stock closed at the lower circuit price of ₹154.45 per share. Between these two extreme prices, the stock was relatively volatile and eventually closed at the lower circuit price of the day. In fact, the stock can be said to have enjoyed a strong listing and amidst a 5 points fall in the Nifty and a 15 points fall in the Sensex.

For the better part of the day, the stock stayed well above the IPO issue price but essentially hovered below the listing price of the day on most occasions, even getting a little close to the lower circuit in the process and eventually closing at the lower circuit of the day. In terms of the circuit filter limits, the stock of Maitreya Medicare Ltd had an upper circuit filter limit of ₹170.65 and a lower circuit band limit of ₹154.45. The stock closed the day 88.35% above the IPO issue price of ₹82 per share but it eventually closed 5% below the listing price of the day at ₹162.55 per share. During the day, the stock of Maitreya Medicare Ltd got close to the upper circuit and touched the lower circuit price of the day before actually closing locked at lower circuit. The stock closed under pressure at the lower circuit at the close of the day with 11,200 sell quantity and no buyers 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 Maitreya Medicare IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Maitreya Medicare IPO stock traded a total of 5.06 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹816.04 lakhs on the first day. The order book during the day showed a lot of volatility with the sell orders consistently exceeding the buy orders at any point of time post the strong listing. That also led the stock to close at the lower circuit of the day with pending sell orders at the end of the trading session, although the price was volatile during the day. It must be noted here that Maitreya Medicare 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, Maitreya Medicare Ltd had a market capitalization of ₹104.66 crore with free-float market cap of ₹28.05 crore. It has a total of 67.76 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 5.06 lakh shares during the day is accounted by delivery trades only, barring some market trade exceptions in the market.