Sameera Agro IPO Lists flat, closes at -5% lower circuit

Flat listing for Sameera Agro and Infra Ltd, then lower circuit

Sameera Agro IPO listed flat on the NSE, exactly at the issue price of ₹180 per share on 01st January 2024. However, after a flat opening, the stock struggled under the selling pressure and closed the day at the -5% lower circuit on the listing price. For the day, the stock closed well below the IPO listing price and also below the IPO issue price; since the listing price of the day was the same as the issue price. In the aftermath of a flat listing and weak to tepid markets overall, the stock of Sameera Agro IPO, closed on 01st January 2024 at the -5% lower circuit. It must be noted here that the Nifty and Sensex were tepid on Monday, with the Nifty gaining just 10 points in the day and the Sensex gaining just about 32 points in the day. During the day, the Nifty and the Sensex were volatile with a downward bias, but managed to close with just about marginal gains. As an outcome, the stock listed absolutely flat, but closed at the lower circuit for the day.

On 01st January 2024, the Nifty closed 10 points higher while the Sensex closed 32 points higher as there was some element of caution in the markets after the frenetic rally in the markets in the previous few weeks. In the last few weeks of 2023, the Nifty and the Sensex had a frenetic rally reaching new highs towards the end of the calendar year. However, this also means that the investors are now worried that further upsides may be more spasmodic from the current levels. There was a typical bout of profit booking in the markets on Monday as investors were a bit cautious about the new year. Also, January has traditionally not been a great month for markets and has generally witnessed a correction. That could have also played on the market sentiments.

Subscription levels, and how it impacted listing of Sameera Agro And Infra Ltd

Let us now turn to the subscription story of Sameera Agro And Infra Ltd. With tepid subscription of 4.14X for the retail portion, and 1.70X for the non-retail HNI / NII portion; the overall subscription was extremely tepid at 2.92X. The IPO was a fixed price IPO issue with the IPO price fixed in advance at a level of ₹180 per share. Being a fixed price issue, there was no question of price discovery in this case. The stock listed absolutely flat on the NSE. However, subsequently, due to the stock opening flat in a tepid two-way market and compounded by tepid subscription numbers, the stock 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 relatively tepid. The subscription normally impacts the price discovery in book building issues and the listing price. The strong subscription has a positive impact on the ability of the stock  in two ways. Firstly, it leads to the stock price getting discovered at the upper end of the band but that was not relevant in this case, being a fixed price issue. However, on the day of listing, the stock managed to open absolutely flat, exactly at the IPO price of ₹180 per share, but it went on to close the day at the -5% lower circuit on the listing price at the close of the day.

Stock closes Day-1 at lower circuit, after an absolutely flat opening

Here is the pre-open price discovery for the SME IPO of Sameera Agro And Infra Ltd on the NSE.

Data Source: NSE

The SME IPO of Sameera Agro And Infra Ltd was a fixed price issue priced at ₹180 per share. On 01st January 2024, the stock of Sameera Agro And Infra Ltd listed on the NSE flat at a price of ₹180 per share, which is exactly at the issue price of ₹180 per share in the IPO. However, despite a volatile day post listing on 01st January 2024, the stock of Sameera Agro And Infra Ltd closed exactly at the lower circuit price of ₹171 per share. The stock had an upper circuit limit of ₹189 per share for the day and a lower circuit limit of ₹171 per share for the day of listing i.e., 01st January 2024.  

In the midst of the volatility in trading during the day, the stock only got briefly above the listing price on the day, leave along getting close to the upper circuit. 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 flat opening for the day and after traversing higher up to ₹185 per share during the trading session. However, this lower circuit comes after a very flat opening on a day when the Nifty and the Sensex closed with gains of 10 points and 32 points respectively; amidst a lot of market volatility.

Trade to Trade (ST) category SME listing

Being an SME IPO on the NSE, the stock of Sameera Agro And Infra Ltd was subjected to 5% circuit filter either side 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 absolutely flat, and exactly at the issue price of ₹180 per share. During the day, the stock made attempts to go above the issue price but stayed well below the upper circuit but the close was exactly at the lower circuit price. On the NSE, the stock of Sameera Agro And Infra 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 Sameera Agro And Infra Ltd on listing day

On Day-1 of listing i.e., on 01st January 2024, Sameera Agro And Infra Ltd touched a high of ₹185.00 per share on the NSE and a low of ₹171 per share. The high price of the day was above the opening price of the day but was well below the upper circuit filter limit price of ₹189 per share. However,  the stock closed at the lower circuit price of ₹171 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 modestly flat listing and weak close, with the Nifty and Sensex also volatile along the way.

For the best part of the day, the stock stayed well below the IPO issue price and also below the IPO listing price due to the flat listing of the stock exactly at the IPO price. It closed the day exactly at the -5% lower circuit for the day. In terms of the circuit filter limits, the stock of Sameera Agro And Infra Ltd had an upper circuit filter limit of ₹189 and a lower circuit band limit of ₹171. The stock closed the day -5% below the IPO issue price of ₹180 per share and also the stock closed -5% below the listing price of the day also at ₹180 per share. During the day, the stock of Sameera Agro And Infra Ltd briefly crossed the IPO listing price, but did not get anywhere close to the upper circuit for the day. However, the stock touched the lower circuit price of the day before actually closing locked at lower circuit at close for the day. The stock closed under pressure at the lower circuit at the close of the day with sell quantity of 4,800  shares 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 limit on the listing price on the day of listing. This circuit is not contingent on the issue price in any way.

Robust volumes for Sameera Agro And Infra Ltd on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Sameera Agro And Infra Ltd stock traded a total of 5.01 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹893.78 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 flat 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 Sameera Agro And Infra 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, Sameera Agro And Infra Ltd had a market capitalization of ₹203.66 crore with free-float market cap of ₹63.13 crore. It has a total of 119.10 lakh shares as the issued capital of the company and a par value of ₹10 per share. As stated earlier, since the trading is on the T2T segment, the entire volume of 5.01 lakh shares during the day is accounted by delivery trades only, barring some market trade exceptions in the market. The stock trades on the NSE SME segment under the trading code (SAIFL) and will be available in the demat account under ISIN code (INE0PZA01015).