Kaynes Technology IPO lists at 32.58% premium but tapers later

Kaynes Technology IPO had a healthy listing on 22nd November 2022, listing at a premium of 32.58%, and closing the day well above the IPO price at the end of the day on listing day. While the stock did show some bouts of volatility during the day and could not h old the high, it closed more than 16% above the issue price on the first day of trading on the NSE. With subscription of 34.16X overall and QIB subscription at 98.47X, the listing was expected to be very healthy and robust, at the very least. Here is the Kaynes Technology India Ltd listing story on 22nd November 2022.

Kaynes Technology IPO price was fixed at the upper end of the band at Rs.587 which is rather normal considering the rather attractive 34.16X overall subscription and 98.47X subscription for the QIB portion. The price band for the IPO was Rs.559 to Rs.587. On 22nd November 2022, the stock of Kaynes Technology India Ltd listed on the NSE at a price of Rs.778, a premium of 32.54% over the issue price of Rs.587. On the BSE also, the stock listed at Rs.775 a premium of 32.03% over the issue price.

On the NSE, Kaynes Technology India Ltd closed on 22nd November 2022 at a price of Rs.685.25. That is a first day closing premium of 16.74% on the issue price of Rs587. However, the stock closed at a discount of 11.92% on the listing price of Rs778 per share. On the BSE, the stock closed at Rs.690.10. That represents a first day closing premium of 17.56% over the issue price but closed at a discount of 10.95% on the listing price on the stock exchange. On both the exchanges, the stock listed smartly above the IPO issue price and but could not hold on to higher levels and gave up from highs. While the closing was still well above the issue price, it was much lower than the listing price. Clearly, the reason for the strong performance post listing seems to be the good subscription numbers and the pricing that left returns on the table for investors. There was overall some pressure on the stock as traders preferred to take profits off the table, despite the overall markets giving a healthy close.

On Day-1 of listing, Kaynes Technology India Ltd touched a high of Rs.786 on the NSE and a low of Rs.675.10. The premium over the issue price sustained through the day but lost value after listing close to the high of the day. In fact, if you look at the range of prices, the stock hardly went above the listing price through the day. However, the pressure on the stock is visible from the fact that the close was much lower than the high and also much lower than the listing price for the day, showing profit booking at higher levels. On Day-1 of listing, the Kaynes Technology India Ltd stock traded a total of 156.36 lakh shares on NSE amounting to value of Rs.1,142.85 crore on the first day, which is good volumes on Day-1. The order book during the day showed a lot of buying pressure at every dip with the buy orders exceeding the sell orders for better part of the trading session, but saw pressure in second half.

On the BSE on Day-1 of listing, Kaynes Technology India Ltd touched a high of Rs.787 and a low price of Rs.675. The premium to issue price sustained through the day. In fact, like on the NSE, even on the BSE, if you look at the range of prices, the stock never went meaningfully above the listing price but never fell even close to the issue price. However, from the listing price, the stock did lose a lot of value from the top. On Day-1 of listing, the Kaynes Technology India Ltd stock traded a total of 9.55 lakh shares on the BSE amounting to value of Rs.69.48 crore on the first day. 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 buying pressure through most part of the trading day with the buy orders exceeding the sell orders consistently through the day. However, there was pressure towards the end of the session. This was despite the rather strong market performance in the day.

At the close of Day-1 of listing, Kaynes Technology India Ltd had a market capitalization of Rs.4,0125.41 crore with free-float market cap of Rs.722.23 crore.