SignatureGlobal India IPO Listed at 15.32% Premium

SignatureGlobal (India) IPO had a very robust listing on 27th September 2023, listing at a smart premium of 15.32%, and rallying further from the listing price. While the closing price on 27th September 2023 was above the IPO issue price for the day, it also closed comfortably above the listing price of the day. For the day, the Nifty closed 52 points higher while the Sensex closed a full 173 points higher. Both the Nifty and the Sensex bounced sharply in the last couple of hours and that led the markets to close in the green after being in the red for most part of the day.

The stock had seen moderate to strong subscription in the IPO. The subscription was 12.50X  overall and QIB subscription at 13.37X. In addition, the retail portion had got subscribed 7.17X in the IPO while the HNI / NII portion also got a healthy subscription of 14.24X. Hence the listing was expected to be modest to strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day, albeit marginally. Here is the SignatureGlobal (India) 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 ₹385 which was anyways along expected lines considering the moderate to strong subscription in the IPO. The price band for the IPO was ₹366 to ₹385 per share. On 27th September 2023, the stock of SignatureGlobal (India) Ltd listed on the NSE at a price of ₹444, a very strong premium of 15.32% over the IPO issue price of ₹385 per share. On the BSE also, the stock listed at ₹445, a premium of just 15.58% over the IPO issue price of ₹385 per share.

How the stock of SignatureGlobal (India) Ltd closed on both exchanges

On the NSE, SignatureGlobal (India) IPO closed on 27th September 2023 at a price of ₹456.55. That is a first day closing premium of 18.58% on the issue price of ₹385 and also a premium of 2.83% on the listing price of ₹444. In fact, the listing price turned out to be 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 ₹458.40. That represents a first day closing premium of 19.03% above the IPO issue price and also a premium of 3.01% above the listing price on the BSE. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 after rallying higher. In fact, the opening price turned out to be the low price of the day on the NSE and close to the low on BSE. The high price of the day was much higher than the close, indicating profit booking at close of trade.

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, SignatureGlobal (India) Ltd touched a high of ₹474 on the NSE and a low of ₹444. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the high price of the day due to late selling. 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 much lower than the high price of the day, hinting at some heavy late selling in the stock. On Day-1 of listing, the SignatureGlobal (India) Ltd stock traded a total of 143.49 lakh shares on NSE amounting to value of ₹643.64 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, with serious selling emerging towards the end. As a result, the stock closed the day with pending sell orders of 17,220 shares on the NSE.

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 27th September 2023. On Day-1 of listing, SignatureGlobal (India) Ltd touched a high of ₹473.45 on the BSE and a low of ₹444. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the high price of the day due to late selling. 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 near the low point of the day while the closing price of the day was much lower than the high price of the day, hinting at some heavy late selling in the stock. On Day-1 of listing, the SignatureGlobal (India) Ltd stock traded a total of 4.08 lakh shares on NSE amounting to value of ₹18.42 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, with serious selling emerging towards the end. As a result, the stock closed the day with pending sell orders on the BSE.

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 trading session, before some late selling emerged on the stock. 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 143.49 lakh shares traded during the first day of trading, the deliverable quantity represented 86.46 lakh shares or a deliverable percentage of 60.26% on the NSE, which is 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 4.08 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 1.61 lakh shares representing total deliverable percentage of 39.55%, 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, SignatureGlobal (India) Ltd had a market capitalization of ₹6,441.01 crore with free-float market cap of ₹708.51 crore. SignatureGlobal (India) Ltd has issued capital of 14.05 crore shares with a par value of ₹1 per share.