Listing Day Update: Global PET Industries Ltd

Global Pet Industries Ltd had a moderately strong listing on 10th July 2023, listing at a premium of 6.12%, and subsequently inching up to close with more gains. The trading day may not have been too robust with the Nifty and the Sensex opening with a lot of fanfare but eventually losing most of the gains and closing with just about marginal gains. The Nifty closed with gains of 24 points and the Sensex with gains of 64 points; which is much lower than where they started off. However, the stock of Global Pet Industries Ltd managed to hold its gains and even marginally build on it. It had probably to do with the subscription data, but we will look at that point separately.

The stock of Global Pet Industries Ltd did show strength during the day, and closed above the listing price as well as the issue price on the first day of trading on the NSE. Being an NSE SME IPO, it is only traded on the SME segment of NSE. Global Pet Industries Ltd opened 6.12% higher and the stock price only briefly dipped below the opening price before bouncing back sharply to close much higher. With subscription of 4.14X for the retail portion and 4.44X for the HNI / NII portion; the overall subscription was actually moderate at 4.30X. The subscription numbers did not display any fireworks but the numbers were decent. It was good enough that it allowed the stock to list at a moderate premium and then sustain the premium post listing.

The Global Pet Industries Ltd IPO was priced at ₹49 via fixed price format. On 10th July 2023, the stock of Global Pet Industries Ltd listed on the NSE at a price of ₹52, a premium of 6.12% on the IPO issue price of ₹49. However, the stock bounced sharply from lower levels and it closed the day at a price of ₹53, which is 8.16% above the IPO price and 1.92% above the listing price of the stock on the first day of listing. In a nutshell, the stock of Global Pet Industries Ltd had closed the day slightly above the listing price but well below the upper circuit price for the stock of 5%. The upper 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, barring a brief dip to the ₹51.50 levels.

On Day-1 of listing i.e., on 10th July 2023, Global Pet Industries Ltd touched a high of ₹54.60 on the NSE and a low of ₹51.50 per share. The opening price may not have been the low point of the day but the stock only marginally dipped to a low of ₹51.50 before bouncing back. Incidentally, the closing price did reach up to the 5% upper circuit level, although it could not sustain there and closed with gains of 1.92% over the listing price. What is truly appreciable is that the stock closed strong despite the overall Nifty falling sharply in the second half of the day after a very strong opening on both the stock exchanges as selling pressure built up at the psychological resistance range of 19,400 to 19,500 levels. The stock closed the day 1.92% above the listing price with 9,000 buy quantity and no sellers. For the SME IPOs, 5% is the upper limit over the listing price on the day of listing. Given below is the pre-IPO price discovery for the stock of Global Pet Industries Ltd on the NSE.

Data Source: NSE

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Global Pet Industries Ltd stock traded a total of 11.04 lakh shares on NSE SME segment amounting to value of ₹582.58 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 helped the stock to close higher than the listing price despite the market overall correcting in the second half of the trading day. It must be noted here that Global Pet Industries 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, Global Pet Industries Ltd had a market capitalization of ₹51.87 crore with free-float market cap of ₹14.47 crore. It has a total of 97.87 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 11.04 lakh shares during the day is accounted for only by delivery trades. This is after adjusting for some error trade adjustments that are normal on listing days.

Global Pet Industries Ltd, is an SME IPO on the NSE which had opened for subscription on 29th June 2023. The company, Global Pet Industries Ltd, was incorporated in the year 2013 to manufacture and export 2-stage PET-stretch Blow Moulding Machines. These are the machines that are used to manufacture a complete range of PET bottles of different capacities ranging from 50 ML bottles to 20 Litre bottles. These PET bottles are made of resistant plastic and are meant for fridge bottles, mineral water storage, carbonated soft drinks and hot fill juices. Some of other applications of these PET bottles are also in the storage of edible oils, liquid detergents, cosmetic products, and confectionary jars.

The Blow Moulding Machines manufactured by Global Pet Industries Ltd are customized to the requirements of the customers and cater to different and chemical resistance needs, depending on the unique nature of the stored liquid. Global Pet Industries Ltd also provides after sales service and necessary accessories for repairs and maintenance of such machinery. The company has 2 manufacturing plants located at Palghar, near Mumbai. It has a separate domestic sales division and an international exports division. It exports to over 19 global markets with some of its chief markets being Ghana, Haiti, Kenya, Mozambique, Nigeria, Nepal, Qatar, South Africa, Tanzania etc.