Hi-Green Carbon IPO Listed at 2.67% premium, then hits upper circuit

Premium listing for Hi-Green Carbon IPO, then hits upper circuit

Hi-Green Carbon IPO had a moderate to strong listing on 28th September 2023, listing at a premium of 2.67%, 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. What is worth noting here is that this happened despite the Nifty falling by 193 points during the day and the Sensex closing sharply lower by 610 points. With subscription of 196.35X for the retail portion, 236.76X for the HNI / NII portion, and 69.95X for the QIB portion; the overall subscription was healthy at 168.92X. The IPO was a book built issue in the price band of ₹71 to ₹75 per share and the IPO price was discovered at ₹75 per share.

As part of the fresh issue portion of the IPO, Hi-Green Carbon Ltd had issued a total of 59,90,000 shares (59.90 lakh shares), which at the upper band IPO price of ₹75 per share aggregated to fresh fund raising of ₹44.93 crore. In addition, the offer for sale (OFS) portion entailed the sale of 10,50,000 shares (10.50 lakh shares), which at the upper band IPO price of ₹75 per share also aggregated to ₹7.88 crore. Therefore, the total issue size of Hi-Green Carbon Ltd entailed the issue and sale of 70,40,000 shares (70.40 lakh shares), which at the upper band IPO price of ₹75 per share resulted in total IPO size of ₹52.80 crore.

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

Here is the pre-open price discovery for the Hi-Green Carbon IPO on the NSE.

Data Source: NSE

On 28th September 2023, the stock of Hi-Green Carbon Ltd listed on the NSE at a price of ₹77, a premium of 2.67% over the IPO issue price of ₹75. However, the stock got a further boost post listing and it closed the day at a price of ₹80.85 which is 7.80% above the IPO issue price of ͭ₹75 per share and a full 5% above the listing price of the stock at ₹77 per share on the first day of listing. In a nutshell, the stock of Hi-Green Carbon 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 for the SME stocks. The opening price actually turned out to be very close to 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 on 28th September 2023.

How prices traversed for Hi-Green Carbon IPO on listing day

On Day-1 of listing i.e., on 28th September 2023, Hi-Green Carbon IPO touched a high of ₹80.85 on the NSE and a low of ₹75.45 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 just a tad below the opening price of the day. The closing price of the day, or the high price of the day, also represented the upper circuit of 5%. That is the maximum that the SME IPO stock is allowed to move in the day, either ways. What is appreciable of this smart close on the day is that it happened on a day when the Nifty was down by 193 points and the Sensex was down 610 points. The stock closed at the 5% upper circuit with 3,44,000 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 Hi-Green Carbon IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Hi-Green Carbon Ltd stock traded a total of 20.16 lakh shares on NSE SME segment amounting to value of ₹1,570.06 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 Hi-Green Carbon 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, Hi-Green Carbon Ltd had a market capitalization of ₹202.04 crore with free-float market cap of ₹56.91 crore. It has a total of 249.90 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 20.16 lakh shares during the day is accounted for only by delivery trades only.