Oriana Power IPO lists at 155.93% premium, rises further

Strong listing for Oriana Power IPO, and a stronger close

Oriana Power IPO had a strong listing on 11th August 2023, listing at a sharp premium of 155.93%, and gained further to close at the 5% upper circuit over the listing price. For the day, the stock closed comfortably above the IPO price as well as the listing price. Ironically, this extremely solid performance came on a day when the markets came under pressure as the Nifty fell by 115 points on the day and the Sensex fell by 366 points for the day on 11th August 2023. It was more about weekend profit booking as traders chose to stay light ahead of the weekend and after a volatile week when the Nifty continued to face resistance at the 19,600 levels and retreated quite sharply from these levels. However, despite such a weak day of trading, the listing of the stock of Oriana Power Ltd was at a smart premium of 155.93% and on top of that, the stock also gained further strength to close the day at the 5% upper circuit limit for the day. Here the upper circuit is calculated on the listing price and not on the IPO price.

The stock of Oriana Power IPO did show a lot of strength on opening and tried to hold on to higher levels, which eventually it succeeded in doing. Despite the pressure of the market correction overall, the stock almost appeared to be unperturbed. The stock closed not only well above the IPO issue price but edged up further to reach the maximum possible limit of the upper 5% circuit for the day. Being an NSE SME IPO, it is only traded on the SME segment of NSE. Oriana Power IPO opened 155.93% higher and the opening price turned out to be very close to the low price for the day. With subscription of 204.04X for the retail portion and subscription of 251.74X for the HNI / NII portion, and 72.16X for the QIB portion; the overall subscription was extremely healthy at 176.58X. The subscription numbers were so strong that it allowed the stock to list at a huge premium even on a day when the market sentiments were very weak. However, what is more appreciable is the fact that the stock not just managed to sustain these levels but even garnered the strength to pull itself up to the upper circuit of the day at 5% limit.

Stock closes Day-1 at substantial premium

Here is the pre-open price discovery for Oriana Power IPO SME on the NSE.

Data Source: NSE

Oriana Power IPO was priced in the price band of ₹115 to ₹118 per share via the book building format. On 11th August 2023, the stock of Oriana Power Ltd listed on the NSE at a price of ₹302, a premium of 155.93% on the IPO issue price of ₹118. Not surprisingly, the price was discovered at the upper end of the band for the IPO, considering the extremely healthy subscriptions levels seen across all the three categories of investors. However, the stock managed to rally further and even scaled the 5% upper circuit for the day as it closed the day at a price of ₹317.10, which is 168.73% above the IPO issue price and precisely 5% above the listing price of the stock on the first day of listing. In a nutshell, the stock of Oriana Power Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers at the maximum possible price for the day. 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 actually turned out to be very close to the low price of the day.

How prices traversed for Oriana Power IPO on listing day

On Day-1 of listing i.e., on 11th August 2023, Oriana Power Ltd touched a high of ₹317.10 on the NSE and a low of ₹286.90 per share. The high price of the day was also exactly the point at which the stock closed for the day, which also represents the upper circuit of 5%. Incidentally, the closing price represented the 5% upper 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 115 points on 11th August 2023 and dipping below the psychological level of 19,500 on a closing basis for the listing day. The stock closed at the 5% upper circuit with only buyers and no sellers on the counter. It may be recollected that for the SME IPOs, 5% is the upper limit and also the lower circuit limit based on the listing price on the day of listing.

Robust volumes for Oriana Power IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Oriana Power Ltd stock traded a total of 27.82 lakh shares on NSE SME segment amounting to value of ₹8,454.12 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. That also led the stock to close at the lower end of the circuit filter. It must be noted here that Oriana Power 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 of 27.82 lakh shares overall purely represents the delivery volumes.

At the close of Day-1 of listing, Oriana Power Ltd had a market capitalization of ₹608.28 crore with free-float market cap of ₹115.57 crore. It has a total of 191.83 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 27.82 lakh shares during the day is accounted for only by delivery trades, barring a few exceptional adjustment trades in the day.

Read about Oriana Power IPO

Brief on the business model of Oriana Power Ltd

Oriana Power Ltd, is an SME IPO on the NSE which had opened for subscription on 01st August 2023. The company, Oriana Power Ltd, was incorporated in in the year 2013 to provide total solar energy solutions for customers on a very customized basis. These services are offered to commercial and industrial customers. This not only is what the world is moving towards but the sheer presence in the alternate energy segment value chain also enhances the valuation of companies.

Oriana Power Ltd offers low carbon energy solutions to its customers which include on-site solar project installation, rooftop and ground mounted system, and off-site solar farms. Oriana Power Ltd has a capex arm and also a services arm. The capex arm, or the capital expenditure arm, entails the engineering, procurement, construction (EPC) as well as the operation of solar projects. The services arm offers solar energy solutions on a Build, Own, Operate and Transfer (BOOT) model, which is a popular execution method for large scale and complex infrastructure projects.