MOS Utility IPO lists at 18.4% premium, gains further

MOS Utility Ltd had a strong listing on 18th April 2023, listing at a sharp premium of 18.42%, and subsequently gained further ground to close above the listing price also. In the last couple of days, the markets have come under pressure as the Nifty slipped below the psychological 17,700 mark. That is due to pressure of selling on Infosys and other IT stocks. However, the stock of MOS Utility Ltd managed to list strong and hold on to close with smart gains for the listing day. For now, the headwinds like the inversion of the yield curve, the negative news flows on banks and the SVB Financial crisis are the major talking points and continue to keep the markets under pressure. To add to that, the UBS Credit Suisse merger also weighed on the markets on 18th April 2023. The weak guidance from IT stocks has also dampened the sentiments in the market, but the stock of MOS Utility Ltd managed to hold on for the day quite strong.

The stock of MOS Utility Ltd did show a lot of 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. MOS Utility Ltd opened 18.42% higher and the opening price actually turned out to be the low price for the day. With subscription of 11.98X for the retail portion, 57.90X for the HNI / NII portion and 11.67X for the QIB portion; the overall subscription was quite healthy at 21.14X. The subscription numbers were so strong that it allowed the stock to list at a huge premium and then sustain the premium post listing.

MOS Utility IPO was priced in the price band of Rs72 to Rs76 and later via book building process the price was discovered at the upper band of Rs76. On 18th April 2023, the stock of MOS Utility Ltd listed on the NSE at a price of Rs90, a premium of 18.42% on the IPO issue price of Rs76. However, the stock bounced sharply from these levels and it closed the day at a price of Rs94.50, which is 24.34% above the IPO price and 5% above the listing price of the stock on the first day of listing. In a nutshell, the stock of MOS Utility Ltd had closed the day exactly at the upper circuit price for the stock of 5% with only buyers and no sellers. 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. Being a T2T listing, as is the norm for SME IPOs, the circuit filter is set at 5% mandatorily.

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On Day-1 of listing i.e., on 18th April 2023, MOS Utility Ltd touched a high of Rs. 94.50 on the NSE and a low of Rs90 per share. The opening price turned out to be the low point while the stock closed at the highest point of the day. Incidentally, the closing price also 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 falling by over 47 points on 18th April 2023 and dipping below the psychological level of 17,700 on a closing basis for the listing day. The stock closed at the 5% upper circuit with 81,600 buy quantity and no sellers. For the SME IPOs, 5% is the upper limit over the listing price on the day of listing.

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the MOS Utility Ltd stock traded a total of 36.05 lakh shares on NSE SME segment amounting to value of Rs3,264.15 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 at the upper end of the circuit filter. It must be noted here that MOS Utility 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, MOS Utility Ltd had a market capitalization of Rs235.64 crore with free-float market cap of Rs47.13 crore. It has a total of 249.36 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, almost the entire volume of 36.05 lakh shares during the day is accounted for only by delivery trades, since intraday trades are not permitted on the T2T segment..

MOS Utility Ltd was incorporated in the year 2009and the company essentially provides digital products and services in the B2C (business to consumer), B2B (business to business), and financial technology fields. MOS Utility essentially provides a platform which gives an opportunity to shopkeepers, retailers, students, housewives, professionals, and insurance agents to start their own online e-commerce business model on the platform itself.

Currently, MOS Utility operates in the following business segments viz. banking, travel, insurance, utility, entertainment, franchisee, and other services. The company boasts of over 168,018 network partners, agents, distributors, and master distributors for offering its payment solutions, remittance, utility, travel, and insurance products. These services are currently offered on pan-India basis through a single and unified digital platform.