Sah Polymers IPO lists at 30.77% premium, stays higher

Sah Polymers: Listing Update
Sah Polymers: Listing Update

IPOs
by 5paisa Research Team Last Updated: 2023-01-12T16:40:55+05:30

Sah Polymers IPO had a very strong listing on 12th January 2023, listing at a healthy premium of 30.77%, and closing the day above the listing price as well as the issue price of the IPO. Despite the overall markets closing in the red, the stock of Sah Polymers had a very solid listing and also sustained its gains. On 12th January 2023, the Nifty closed 37 points lower while the Sensex closed 147 points lower. While the stock did show some bouts of volatility during the day, it closed more than 37% above the issue price on the first day of trading on the NSE. It also closed well above the listing price. With subscription of about 17.46X overall and strong subscription numbers from HNIs and retail, the listing was expected to be fairly robust on the listing day. Here is the Sah Polymers Ltd listing story on 12th January 2023.

The IPO price was fixed at the upper end of the band at Rs.65 which was anyways understandable considering the 17.46X overall subscription and the strong subscription numbers from the retail and HNI investors. Both the retail and the HNI portion got subscribed more than 30 times. The price band for the IPO was Rs. 61 to Rs. 65. On 12th January 2023, the stock of Sah Polymers Ltd listed on the NSE at a price of Rs. 85, a healthy premium of 30.77% over the IPO issue price of Rs65. On the BSE also, the stock listed at Rs. 85, a premium of 30.77% over the IPO price.

On the NSE, Sah Polymers Ltd closed on 12th January 2023 at a price of Rs. 89.25. That is a first day closing premium of 37.31% on the issue price of Rs. 65 and a much more moderate premium of 5% on the listing price of Rs. 85. In fact, the stock price closed the day at the highest point of the day, which also marked the upper circuit permitted for the stock. On the BSE also, the stock closed at Rs. 89.25. That represents a first day closing premium of 37.31% above the issue price and also a premium of 5% above the listing price on the stock exchange.

On both the exchanges, the stock listed well above the IPO issue price and closed Day-1 exactly at the upper circuit level of 5%,which also marked the high price for the day. In fact, the opening price turned out to be the low for the day and the closing price was the high for the day. Clearly, the strong subscription traction from retail and HNI investors helped the stock to close with smart gains on IPO listing day, despite the weak signals coming from the market as a whole.

On Day-1 of listing, Sah Polymers Ltd touched a high of Rs. 89 on the NSE and a low of Rs. 85. The premium sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low point of the day and the stock closed exactly at the high point of the day, which also marked the 5% upper circuit limit incidentally. The spike in the stock price was helped by the fact that after a positive opening the stock held on and never dropped below the opening price. On Day-1 of listing, the Sah Polymers Ltd stock traded a total of 41.83 lakh shares on NSE amounting to value of Rs. 36.45 crore on the first day. The order book during the day showed a lot of buying with the buy orders far exceeding the sell orders at any point of time. That helped the stock to hold up even in weak market conditions overall.

On Day-1 of listing, Sah Polymers Ltd touched a high of Rs. 89 on the BSE and a low of Rs. 85, trading in exactly the same range as the NSE. The premium sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low point of the day and the stock closed exactly at the high point of the day, which also marked the 5% upper circuit limit incidentally. The spike in the stock price was assisted by the fact that after a positive opening the stock held on and never even once fell below the opening price. On Day-1 of listing, the Sah Polymers Ltd stock traded a total of 4.16 lakh shares on the BSE amounting to value of Rs. 3.68 crore on the first day. The order book during the day showed consistent buying with the buy orders far exceeding the sell orders at any point of time. This enabled the stock to close at the upper circuit even in a weak market overall.

The volumes on both the exchanges were pretty low overall, although it was more on the NSE than on the BSE. The order book through the day showed a lot of buying support with the buy orders far exceeding the sell orders at any point. Considering its small equity base, the stock found a lot of support and a case of demand exceeding supply. This was despite the weak markets overall. On the NSE, out of the total 41.83 lakh shares traded during the first day of trading, the full 100% was deliverable quantity since this is a Trade to Trade (T2T) stock traded in the BE segment. Even on the BSE, the entire volume of 4.16 lakh shares represented mandatory delivery since it is the in T2T segment with mandatory delivery.

At the close of Day-1 of listing, Sah Polymers Ltd had a market capitalization of Rs. 230.23 crore with free-float market cap of Rs. 50.65 crore.


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