Holmarc Opto-Mechatronics IPO Listing Day Details

Strong listing for Holmarc Opto-Mechatronics IPO, hits upper circuit

Holmarc Opto-Mechatronics IPO had a strong listing on 25th September 2023, listing at a sharp premium of 63.13%, and subsequently hitting the upper circuit of 5% on the listing price for the day. For the day, the stock closed comfortably above the IPO issue price as well as the IPO listing price. The flat and lacklustre Nifty did not have too much of a pressing impact on the stock as it managed to close with gains despite the rather tepid markets. The Nifty closed absolutely flat but that did not stop the stock from giving a stellar performance on the day of listing on 25th September 2023. Despite a weak day of trading in the markets, the listing of the stock was at a smart premium of 63.13% and to add a feather to its cap, the stock also touched the 5% upper circuit on 25th September 2023, the day of listing.

The stock of Holmarc Opto-Mechatronics Ltd did show a lot of strength on opening and managed to hold higher. The stock closed a good 5% above the IPO price and well above the issue price as the buying strength in the stock was reinforced by the strong subscription numbers at the time of the IPO. Being an NSE SME IPO, it is only traded on the SME segment of NSE. Holmarc Opto-Mechatronics Ltd opened 63.13% higher and the opening price turned out to be very close to the low price for the day. However, the stock closed at 5% upper circuit, marking the high price of the day. With subscription of 75.78X for the retail portion and 93.27X for the HNI / NII portion; the overall subscription was extremely healthy at 85.81X. The subscription numbers were so strong that it allowed the stock to list at a huge premium even on a day when the market sentiments were tepid at best. In addition, the stock gained further to close at 5% upper circuit compared to the opening price of the day on 25th September 2023.

Stock closes Day-1 at substantial premium

Here is the pre-open price discovery for the Holmarc Opto-Mechatronics IPO on the NSE.

Data Source: NSE

The SME IPO of Holmarc Opto-Mechatronics Ltd was a fixed priced issue and was priced at ₹40 per share. On 25th September 2023, the stock of Holmarc Opto-Mechatronics Ltd listed on the NSE at a price of ₹65.25, a premium of 63.13% on the IPO issue price of ₹40. Not surprisingly, the price was discovered at the upper end of the band for the IPO. However, the stock had a very smooth up journey and it closed the day at a price of ₹68.50, which is 71.25% above the IPO issue price and 5% above the listing price of the stock on the first day of listing. In a nutshell, the stock of Holmarc Opto-Mechatronics Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers . 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 very close to the low price of the day while the closing price at the 5% upper circuit was the closing price. It had 48,000 pending buy orders at the time of close.

How prices traversed for Holmarc Opto-Mechatronics IPO on listing day

On Day-1 of listing i.e., on 25th September 2023, Holmarc Opto-Mechatronics Ltd touched a high of ₹68.50 on the NSE and a low of ₹65.00 per share. The high price of the day was exactly at the closing price of the stock, which is also the upper circuit of 5%. On the other hand, the while the opening price of the stock for the day was just ₹0.25 above the low price of the day. Incidentally, the closing price represented the 5% upper circuit price of the stock for the day, which is the maximum that the SME IPO stock is allowed to move in the day. What is truly appreciable is that the stock closed strong despite the overall Nifty being absolutely lacklustre and tepid on 25th September 2023. The stock closed at the 5% upper circuit with 48,000 buy quantity and no sellers. For the SME IPOs, 5% is the upper limit and also the lower circuit on the listing price on the day of listing.

Robust volumes for Holmarc Opto-Mechatronics IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Holmarc Opto-Mechatronics Ltd stock traded a total of 13.77 lakh shares on NSE SME segment amounting to value of ₹916.39 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 Holmarc Opto-Mechatronics 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 of 13.77 lakh shares purely represents the delivery volumes.

At the close of Day-1 of listing, Holmarc Opto-Mechatronics Ltd had a market capitalization of ₹68.84 crore with free-float market cap of ₹25.79 crore. It has a total of 100.50 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 13.77 lakh shares during the day is accounted for only by delivery trades.

Brief on the business model of Holmarc Opto-Mechatronics Ltd

Holmarc Opto-Mechatronics Ltd was incorporated in 1993 and is engaged in the business of manufacture of scientific and engineering instruments. Its main target customers are research, industry, and education. These instruments are designed and developed by Holmarc Opto-Mechatronics Ltd. Their product portfolio comprises of imaging instruments, measuring instruments, analytical instruments, laboratory instruments, opto-mechanical instruments, spectroscopy and is also into industrial automation. Some of the specialized products manufactured by Holmarc Opto-Mechatronics Ltd include automated rotary antennae positioners, spectroscopic ellipsometer, UV ozone cleaners, spectroscopic reflectometers, and Raman spectrometer.

The company has been promoted by Jolly Cyriac and Ishach Sainuddin. The promoter holding in the company currently stands at 87.30%. However, post the fresh issue of shares as part of the IPO, the promoter equity holding share will reduce to 62.54%. The fresh issue funds will be used by the company for funding capex and purchase of additional machinery. Part of the funds will also go towards working capital needs of the company and also towards general corporate purposes. While Finshore Management Services Ltd will be the lead manager to the issue, Cameo Corporate Services Ltd will be the registrar to the issue. The market maker for the issue is Nikunj Stock Brokers Ltd.