Digikore Studios IPO Listed at 57.89% higher

Premium listing for Digikore Studios Ltd, then hits upper circuit

Digikore Studios IPO had a strong listing on 04th October 2023, listing at a premium of 57.89%, and subsequently hitting the 5% upper circuit on the listing price. Of course, the stock closed comfortably above the IPO issue price and the IPO listing price for the day. Overall, there was a sharp fall in the markets as the Nifty closed 93 points in the red while the Sensex closed 286 points lower. The weakness in the market was largely on account of the sharp fall in the Nifty in recent days with the Nifty falling below the 19,500 support levels fairly sharply, supported by volumes. However, that did not deter the stock.

With subscription of 370.17X for the retail portion, 65.63X for the QIB portion and 362.65X for the HNI / NII portion; the overall subscription was extremely healthy at 281.58X. The IPO was a book building issue in the price band of ₹168 to ₹171 per share and the price discovery happened at the upper end of the band at ₹171 per share. The stock listed at a strong premium of 57.89%, even on a day when the market sentiments were extremely weak overall. However, subsequently, the stock not only held the gains but also hit the upper circuit of 5%, despite the fall in the market overall.

Stock closes Day-1 at 5% upper circuit, after a very strong start

Here is the pre-open price discovery for the SME IPO of Digikore Studios Ltd on the NSE.

Data Source: NSE

The SME IPO of Digikore Studios Ltd was priced at ₹171 per share, at the upper end of the IPO price band. On 04th October 2023, the stock of Digikore Studios Ltd listed on the NSE at a price of ₹270 per share, a premium of 57.89% over the IPO issue price of ₹171. However, the stock got a further boost post listing and it closed the day at a price of ₹283.50 which is 65.79% above the IPO issue price of ͭ₹171 per share and a full 5% above the listing price of the stock at ₹270 per share on the first day of listing. In a nutshell, the stock of Digikore Studios Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers in the counter. Like the upper circuit price, even the lower circuit price on listing day is calculated on the listing price and not on the IPO price. The opening price actually turned out to be the low price of the day, while the closing price was exactly at the high price of the day, being the 5% upper circuit limit for the day.

How prices traversed for Digikore Studios Ltd on listing day

On Day-1 of listing i.e., on 04th October 2023, Digikore Studios Ltd touched a high of ₹283.50 on the NSE and a low of ₹270 per share. The high price of the day was exactly the closing price of the stock while the stock low price of the day was exactly at the opening price of the stock for the day. The closing price of the day, or the high price of the day, also represents the upper circuit of 5%. That is the maximum that the SME IPO stock is allowed to move in the day, either ways. In fact, the stock enjoyed a strong listing and a close at the upper circuit on a day when the Nifty was down 93 points and the Sensex was down 286 points. The stock closed at the 5% upper circuit with 4,000 buy quantity and no sellers in the counter. For the SME IPOs, it may be recollected, that 5% is the upper limit and also the lower circuit on the listing price on the day of listing.

Robust volumes for Digikore Studios Ltd on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Digikore Studios Ltd stock traded a total of 10.368 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹2,866.86 lakhs on the first day.  The order book during the day showed a lot of buying with the buy orders consistently exceeding the sell orders at any point of time. That also led the stock to close at the upper end of the circuit filter. It must be noted here that Digikore Studios Ltd is in the trade to trade (T2T) segment so only delivery trades are possible on the stock. Hence the entire volume for the day purely represents the delivery volumes.

At the close of Day-1 of listing, Digikore Studios Ltd had a market capitalization of ₹179.53 crore with free-float market cap of ₹60.05 crore. It has a total of 63.33 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 10.368 lakh shares during the day is accounted for only by delivery trades only, barring some market very marginal trade exceptions.