Sai Silks Kalamandir IPO Listed at 4.05% premium and rallies further

Sai Silks Kalamandir IPO had a very moderate to robust listing on 27th September 2023, listing at a modest premium of 4.05%, and rallying further from the listing price. While the closing price on 27th September 2023 was well above the IPO issue price, it also closed well above the listing price in the morning. For the day, the Nifty closed 52 points higher and the sharp rally in the market happened in the second half after it remained in the negative for most part of the day.

The stock had seen moderately strong subscription in the IPO. The subscription was 4.47X  overall and QIB subscription were at 12.17X. In addition, the retail portion had got subscribed just 0.91X in the IPO while the HNI / NII portion also got a moderate subscription of 2.54X. Hence the listing was expected to be flat to moderate. However, while the listing was moderate, the performance strength got reinforced during the trading day as the Nifty overall gained momentum to closed in the positive. Here is the Sai Silks (Kalamandir) Ltd listing story on 27th September 2023.

IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹222 which was anyways along expected lines considering the moderate to positive subscription in the IPO. The price band for the IPO was ₹210 to ₹222. On 27th September 2023, the stock of Sai Silks (Kalamandir) Ltd listed on the NSE at a price of ₹231, a modest premium of 4.05% over the IPO issue price of ₹222 per share. On the BSE also, the stock listed at ₹230.10, a premium of a modest 3.65% over the IPO issue price of ₹222 per share.

How the stock of Sai Silks (Kalamandir) Ltd closed on both exchanges

On the NSE, Sai Silks Kalamandir IPO closed on 27th September 2023 at a price of ₹245. That is a first day closing premium of 10.36% on the issue price of ₹222 and also a premium of 6.06% on the listing price of ₹231 per share. In fact, the listing price turned out to be very near to the low price of the day and the stock traded for the entire trading day above the opening listing price. On the BSE, the stock closed at ₹244.85. That represents a first day closing premium of 10.29% above the IPO issue price and also a premium of 6.41% above the listing price on the BSE. On both the exchanges, the stock listed with a modest premium over the IPO issue price and also managed to close Day-1 after rallying sharply higher. In fact, the opening price turned out to be very close to the low price of the day on both the exchanges. The high price of the day was just slightly above the closing price on both the exchanges, which hints at underlying strength in the stock.

Price volume story 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 27th September 2023. On Day-1 of listing, Sai Silks (Kalamandir) Ltd touched a high of ₹247 on the NSE and a low of ₹230.95. The premium to the listing price sustained through the day, although the stock did manage to hold on and close the day very near to the high price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be the very close to the low point of the day while the closing price of the day was just a tad below the high price due to some late selling on the stock. On Day-1 of listing, the Sai Silks (Kalamandir) Ltd stock traded a total of 337.60 lakh shares on NSE amounting to value of ₹799.31 crore 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. The stock closed the day with pending buy orders of 71,380 shares on the NSE.

Price volume story on the BSE

Let us now turn to how the stock traversed on the Bombay Stock Exchange (NSE) on 27th September 2023. On Day-1 of listing, Sai Silks (Kalamandir) Ltd touched a high of ₹246.85 on the BSE and a low of ₹230.10. The premium to the listing price sustained through the day, although the stock did manage to hold on and close the day exactly at the high price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was the high price of the day on the counter. On Day-1 of listing, the Sai Silks (Kalamandir) Ltd stock traded a total of 11.52 lakh shares on BSE amounting to value of ₹27.44 crore 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. The stock closed the day with pending buy orders on the BSE also.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, 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 the trading session on the first day of trading. The sharp bounce in the Nifty and the Sensex from lower levels also helped the stock to stay robust. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 337.60 lakh shares traded during the first day of trading, the deliverable quantity represented 242.81 lakh shares or a deliverable percentage of 71.92% on the NSE, which is sharply higher than the routine listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 11.52 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 6.44 lakh shares representing total deliverable percentage of 55.94%, well below the delivery action on the NSE. 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.

At the close of Day-1 of listing, Sai Silks (Kalamandir) Ltd had a market capitalization of ₹3,755.17 crore with free-float market cap of ₹938.79 crore. Sai Silks (Kalamandir) Ltd has issued capital of 15.34 crore shares with a par value of ₹2 per share.