SRIT India shares listed at Rs 148 on the NSE on October 6, a 13.85% premium to the Rs 130 issue price, after its Rs 218.40 crore IPO was subscribed 125.16 times.
The gap between demand and debut is the story. An issue bid up 125 times produced a listing gain of 13.85% on the NSE, and 7.54% on the BSE, where it listed at Rs 139.80.
The grey market had implied a price of around Rs 162, so the actual listing came below that unofficial expectation, which shows why such signals are not forecasts.
The stock traded higher after listing, at around Rs 155.09 or 19.30% above the issue price, according to BW Businessworld.
A listing day move tells an investor about demand on one day and not about the company’s future, and this report is not investment advice.
It was subscribed 125.16 times in total.
The non-institutional investor quota received the most bids, with the reserved portion subscribed 312.99 times.
The lot size was 115 shares, so the minimum retail investment at the top of the band was Rs 14,950.
An investor who got one lot at Rs 130 and sold at the NSE listing price of Rs 148 would have made Rs 2,070 before charges, on this calculation.
Before listing, the grey market premium implied a listing price of around Rs 162, according to IPO trackers.
The actual NSE listing price was below that grey market expectation, which is an unofficial indicator and not a forecast.
SRIT India Limited is a Bengaluru-based IT and IT-enabled services company, incorporated in September 1999.
The company provides digital solutions, custom application development and system integration services to government entities and enterprises in India and some overseas markets.
On listing day, a special pre-open session runs from 9 am to 9:45 am to set the listing price, and normal trading starts at 10 am.
NSE Exchange Plaza, Mumbai (file image), Wikimedia Commons, CC BY-SA 4.0