Abans Holdings IPO lists at 1.11% premium but falls sharply later

Abans Holdings IPO had a tepid listing on 23rd December 2022, listing at a premium of just of 1.11%, but closing the day sharply below the listing price as well as the issue price of the IPO. One almost say that the stock had select a wrong day to list as the Nifty was down 320 points and the Sensex was down nearly 980 points on Friday. While the stock did show some bouts of volatility during the day, it closed more than 19% below the issue price on the first day of trading on the NSE. It also closed well below the listing price. With subscription of just about 1.1X overall and QIB subscription at 4.10X, the listing was expected to be moderate, at the very best. Here is the Abans Holdings Ltd listing story on 23rd December 2022.

The IPO price was fixed at the upper end of the band at Rs. 270 which was anyways rather ambitious considering the rather moderate 1.10X overall subscription and the 4.10X QIB subscription in the IPO. In addition, the retail portion had got just 40% subscription in the IPO. The price band for the IPO was Rs. 256 to Rs. 270. On 23rd December 2022, the stock of Abans Holdings Ltd listed on the NSE at a price of Rs. 273, a premium of 1.11% over the IPO issue price of Rs. 270. On the BSE also, the stock listed at Rs. 270, exactly at the IPO price.

On the NSE, Abans Holdings Ltd closed on 23rd December 2022 at a price of Rs. 218.40. That is a first day closing discount of -19.11% on the issue price of Rs. 273 and a discount of -20% on the listing price of Rs. 273. In fact, the listing price turned out to be the high price of the day and the stock closed at the 20% lower circuit as calculated from the listing price. On the BSE, the stock closed at Rs. 216.05. That represents a first day closing discount of -19.98% below the issue price and also a discount of -19.98% below the listing price on the stock exchange. On both the exchanges, the stock listed marginally above the IPO issue price but closed Day-1 sharply below the listing price and the IPO price too at the 20% lower circuit. Clearly, the tepid subscription took its toll on the first day of listing as there was a rush to exit the stock after the weak opening. But the real problem was the market crash on Friday.

On Day-1 of listing, Abans Holdings Ltd touched a high of Rs. 273 on the NSE and a low of Rs. 218.40. The discount sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the high point of the day and the stock closed at exactly the low price of the day. The fall was perhaps stemmed only by the 20% lower circuit that got triggered on the stock. On Day-1 of listing, the Abans Holdings Ltd stock traded a total of 17.13 lakh shares on NSE amounting to value of Rs. 42.01 crore on the first day. The order book during the day showed a lot of selling with the sell orders far exceeding the buy orders at any point of time. At close, all buyer orders were absorbed at lower circuit.

On Day-1 of listing, Abans Holdings Ltd touched a high of Rs. 272 on the BSE and a low of Rs. 216. The discount sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the high point of the day and the stock closed at exactly the low price of the day. The fall was perhaps stemmed only by the 20% lower circuit that got triggered on the stock. On Day-1 of listing, the Abans Holdings Ltd stock traded a total of 1.36 lakh shares on BSE amounting to value of Rs. 3.19 crore on the first day. The order book during the day showed a lot of selling with the sell orders far exceeding the buy orders at any point of time. At close, all buyer orders were absorbed at lower circuit.

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 a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time. That make it a sell on rises stock through the day. However, this can also be attributed to the selling pressure on Friday. On the NSE, out of the total 17.13 lakh shares traded during the first day of trading, the deliverable quantity represented 9.63 lakh shares or a deliverable percentage of 56.21% on the NSE. That shows a lot of delivery selling. Even on the BSE, out of the total 1.36 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 0.45 lakh shares representing total deliverable percentage of 32.89%.

At the close of Day-1 of listing, Abans Holdings Ltd had a market capitalization of Rs. 1,083.40 crore with free-float market cap of Rs. 281.68 crore.