Newjaisa Technologies IPO Listed at 51.06% higher

Premium listing for Newjaisa Technologies IPO, then closes flat

Newjaisa Technologies IPO had a strong listing on 05th October 2023, listing at a premium of 51.06% on the NSE SME segment, and subsequently closing the day flat to lower, compared to the listing price of the IPO. Of course, the stock closed comfortably above the IPO issue price and a tad below the IPO listing price for the day. Overall, there was a sharp jump in the markets as the Nifty closed 110 points in the green while the Sensex closed 406 points higher for the day. The strength in the market was largely on account of some value buying at lower levels after several days of correction in the market. The Nifty closed the day above the 19,500 support level.

With subscription of 6.54X for the retail portion, 1.02X for the QIB portion and 15.34X for the HNI / NII portion; the overall subscription was relatively modest at 6.85X. The IPO was a book building issue in the price band of ₹44 to ₹47 per share and the price discovery happened at the upper end of the band at ₹47 per share. The stock listed at a strong premium of 51.06% to the issue price, and in that it was helped along the way by a strong performance by the Nifty and the Sensex. However, subsequently, the stock did not gain too much and closed just a tad below the listing price of the day.

Stock closes Day-1 flat to negative, after a very strong

Here is the pre-open price discovery for the Newjaisa Technologies IPO on the NSE.

Data Source: NSE

The SME IPO of Newjaisa Technologies Ltd was priced at ₹47 per share, at the upper end of the IPO price band. On 05th October 2023, the stock of Newjaisa Technologies Ltd listed on the NSE at a price of ₹71 per share, a premium of 51.06% over the IPO issue price of ₹47. However, the stock did spike higher but could not hold on and eventually it closed the day at a price of ₹70.55 which is 50.11% above the IPO issue price of ͭ₹47 per share but marginally lower by -0.63% compared to the listing price of the stock at ₹71 per share on the first day of listing. In a nutshell, the stock of Newjaisa Technologies Ltd had closed the day marginally lower than the listing price, although well above the IPO issue price on 05th October 2023. 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. While the stock of Newjaisa Technologies Ltd got very close to the upper circuit on 05th October 2023, it could not sustain and trended lower to close tad below the listing price. The opening price and the closing price of the day actually turned out to be the mid points of the day as the stock gyrated between the upper circuit price and the lower circuit price before closing very near to the listing price.

How prices traversed for Newjaisa Technologies Ltd on listing day

On Day-1 of listing i.e., on 05th October 2023, Newjaisa Technologies Ltd touched a high of ₹74.55 on the NSE and a low of ₹67.45 per share. The high price of the day was exactly the upper circuit of the day and the low price was the lower circuit of the day. That means; the stock gyrated between the upper circuit and the lower circuit for the day before closing just below the listing price. The closing price of the day, was marginally lower than the listing price but the close does not reveal the massive gyrations in the stock during the day. On listing day, 5% is the maximum that the SME IPO stock is allowed to move in the day, either ways. That is both in terms of upper circuit and the lower circuit. In fact, the stock enjoyed a strong listing but closed marginally below the listing price on a day when the Nifty was up 110 points and the Sensex was up about 406 points. 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 Newjaisa Technologies Ltd on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Newjaisa Technologies Ltd stock traded a total of 37.26 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹2,629.81 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, but pressure also coming in at the higher levels. That also led the stock to close on 05th October 2023, somewhere halfway between the upper circuit price and the lower circuit price. It must be noted here that Newjaisa Technologies 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, Newjaisa Technologies Ltd had a market capitalization of ₹227.05 crore with free-float market cap of ₹69.59 crore. It has a total of 321.83 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 37.26 lakh shares during the day is accounted for only by delivery trades only, barring some market trade exceptions.