This article provides a detailed analysis of the listing performance for the NSDL, Shrilotus Developers, and MAB Engineering IPOs. We will explore how each IPO performed on its listing day, including unexpected successes and disappointing outcomes.
Overall Market Performance on Listing Day
On the day of these IPO listings, the broader market did not exhibit the expected positive momentum. Trading below its previous closing in the initial hours, the market ultimately closed at 24,574, down approximately 0.31%. Around 10:00 AM, coinciding with the IPO listings, the market experienced a notable decline of over 50 points. The day concluded with selling pressure, attributed to the repo rate-related expectations not being met.
MAB Engineering IPO: A Disappointing Debut
The MAB Engineering IPO, contrary to expectations of approximately 15% listing gain, delivered a disappointing performance. The company closed at ₹409.15 today. While a 6% increase was observed, this was from its listing price. Shares were allocated at ₹385 and listed on BSE at ₹386. Despite its Grey Market Premium (GMP) trading at 15%, the IPO’s actual listing was effectively at a 0% premium. This flat listing outcome is attributed to Qualified Institutional Buyers (QIBs) subscribing fewer times than High Net-worth Individuals (HNIs), with retail investors also showing higher subscription rates. This trend is now directly impacting other small issue-size IPOs.
Shrilotus Developers IPO: Strong Post-Listing Momentum
The Shrilotus Developers IPO listed at a premium slightly above its Grey Market Premium. On its listing day, the company closed with an upper circuit, reflecting approximately a 31% gain over its previous closing, which translates to a 10% increase from the ₹150 allocation price. This positive momentum is attributed to the allocation structure: only 10% of shares were allocated to retail investors, while 75% went to QIBs and 15% to HNIs. The limited retail holding resulted in reduced selling pressure. The company has a 10% upper and 10% lower circuit limit, and it successfully closed at its upper circuit. Shrilotus Developers operates as a small-cap company with a total market capitalization of ₹7331 crore. The presence of several prominent names associated with the company is expected to yield both short-term and long-term impacts. As a provider of luxury apartments and business spaces, the company is poised to benefit from future increases in purchasing power, directly influencing its listing gain and sustained upward movement.
NSDL IPO: Robust Gains and Future Strategy
The NSDL (National Securities Depository Limited) IPO demonstrated robust performance, closing at ₹936 with a 6.36% increase. Shares were initially allocated at ₹800 and listed at ₹880, marking an immediate 10% gain. Post-listing, the company soared to a high of ₹943, reflecting an additional 6% increase from its listing price, totaling approximately 17% above the original IPO price. NSDL operates within a 20% upper and lower circuit limit. The speaker indicated having partially booked profits from some allotted shares while holding others, in line with a pre-planned strategy.
With a market capitalization of ₹18720 crore, NSDL is categorized as a mid-cap company. A move above ₹1000 could lead to the company being considered overvalued. Interestingly, market declines are believed to benefit NSDL, while market upswings tend to favor its peer competitor, CDSL. For risk-takers, the speaker suggests holding NSDL shares with a stop loss at today’s low. However, those averse to risk are advised to avoid it for now. A potential strategy involves observing if a base forms or if the stock trades above today’s low for a few days before considering playing the momentum.
Conclusion
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