Vishnusurya Projects IPO Listed at 7.35% higher, hits upper circuit

Modest Premium for Vishnusurya Projects and Infra IPO, hits upper circuit

Vishnusurya Projects and Infra Ltd had a modest listing on 10th October 2023, listing at a premium of 7.35%, and subsequently hitting the 5% upper circuit on the listing price. Of course, the stock closed comfortably above the IPO issue price and the IPO listing price for the day. Overall, there was a sharp spike in the markets as the Nifty closed 178 points in the green while the Sensex closed 567 points higher. The strength in the market was largely on the back of the recent volatility in markets after the rising geopolitical tensions in the Middle East and West Asia. This helped the stock to hit upper circuit after listing.

With subscription of 43.63X for the retail portion, and 36.32X for the HNI / NII portion; the overall subscription was extremely healthy at 44.11X. The IPO was a fixed price issue with the price of the IPO fixed at ₹68 per share. The stock listed at a modest premium of 7.35%, even on a day when the market sentiments were already quite strong overall. However, subsequently, the stock not only held the gains but also hit the upper circuit of 5%, in line with the bullishness in the markets overall.

Stock closes Day-1 at 5% upper circuit, after a modest start

Here is the pre-open price discovery for the Vishnusurya Projects and Infra IPO on the NSE.

Data Source: NSE

Vishnusurya Projects and Infra IPO was priced at ₹68 per share in the form of a fixed price IPO. On 10th October 2023, the stock of Vishnusurya Projects and Infra Ltd listed on the NSE at a price of ₹73, a premium of 7.35% over the IPO issue price of ₹68. However, the stock got a further boost post listing and it closed the day at a price of ₹76.65 which is 12.72% above the IPO issue price of ͭ₹68 per share and a full 5% above the listing price of the stock at ₹73 per share on the first day of listing. In a nutshell, the stock of Vishnusurya Projects and Infra Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers in the counter. 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 the low price of the day, while the closing price was exactly at the high price of the day, being the 5% upper circuit limit for the day.

How prices traversed for Vishnusurya Projects and Infra IPO on listing day

On Day-1 of listing i.e., on 10th October 2023, Vishnusurya Projects and Infra Ltd touched a high of ₹76.65 on the NSE and a low of ₹73 per share. The high price of the day was exactly the closing price of the stock while the stock low price of the day was exactly at the opening price of the stock for the day. The closing price of the day, or the high price of the day, also represents the upper circuit of 5%. That is the maximum that the SME IPO stock is allowed to move in the day, either ways. In fact, the stock enjoyed a modest listing and a close at the upper circuit on a day when the Nifty was up 178 points and the Sensex was up 567 points. The stock closed at the 5% upper circuit with 2,36,000 buy quantity and no sellers in the counter. 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 Vishnusurya Projects and Infra IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Vishnusurya Projects and Infra Ltd stock traded a total of 31.44 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹2,344.48 lakhs on the first day.  This is sharply higher than the normal median volumes that NSE SME stocks tend to get on the day of listing. 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 upper end of the circuit filter. It must be noted here that Vishnusurya Projects 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, Vishnusurya Projects and Infra Ltd had a market capitalization of ₹188.63 crore with free-float market cap of ₹71.23 crore. It has a total of 246.10 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 31.44 lakh shares during the day is accounted for only by delivery trades only, barring some market trade exceptions.