Nexus Select Trust REIT IPO lists at 3% premium, holds higher

Nexus Select Trust REIT Ltd moderately positive listing on 19th May 2023, listing at a premium of 3%, but closing the day higher than the listing price and, obviously, better than the IPO price too. On Friday, 19th May 2023, the Nifty gained 73 points and the Sensex gained 298 points. The timing was perfect since this bounce came after 3 successive days of corrections and that played a part in holding the stock higher. While the stock showed limited bouts of volatility during the day, it closed more than 4% above the issue price on the first day of trading on the NSE. More importantly, it not only closed above the listing price for the day but also the opening price turned out to be the low point of the day, which shows a lot of strength in the stock. With subscription of 5.45X  overall and QIB subscription at 4.81X, the listing was expected to be moderate to positive, at the very least. Here is the Nexus Select Trust REIT Ltd listing story on 19th May 2023.

The IPO price was fixed at the upper end of the band at Rs100 which was rather understandable considering the better than expected 5.45X overall subscription and the 4.81X QIB subscription in the IPO. In addition, the non-QIB portion had subscribed more than 6 times. The price band for the IPO was Rs95 to Rs100. On 19th May 2023, the stock of Nexus Select Trust REIT Ltd listed on the NSE at a price of Rs103, a premium of 3% on the IPO issue price of Rs100. On the BSE also, the stock listed at Rs102.27, a premium 2.27% to the IPO price.

On the NSE, Nexus Select Trust REIT Ltd closed on 19th May 2023 at a price of Rs104.30. That is a first day closing premium of 4.30% on the issue price of Rs100 and a premium of 1.26% on the listing price of Rs103. In fact, the listing price turned out to be the low price of the day and the stock traded all through the day above the IPO listing price, which signalled strength in the stock. On the BSE, the stock closed at Rs.104.26. That represents a first day closing premium of 4.26% above the issue price and also a premium of 1.95% above the listing price on the stock exchange. On both the exchanges, the stock listed at a premium and eventually closed above the listing price. Also, on both exchanges, the opening price was the low price of the day and the closing price was nearer to the high price of the day. Clearly, the better than expected subscription had a favourable impact on the stock on the first day of listing as there was a rush to add more from institutions and from HNI investors. To an extent, the positive undertone of the market on Friday also helped.

On Day-1 of listing, Nexus Select Trust REIT Ltd touched a high of Rs104.75 on the NSE and a low of Rs.103. The premium sustained through the day since the listing price turned out to be the low price of the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low point of the day and the stock closed very near to the high price of the day. In an otherwise slow moving industry like REITs, the positive sentiments in the market helped to improve matters. On Day-1 of listing, the Nexus Select Trust REIT Ltd stock traded a total of 350.70 lakh shares on NSE amounting to value of Rs363.89 crore on the first day.  The order book during the day showed a lot of buying with the buy orders far exceeding the sell orders at any point of time. Towards the end, some selling pressure was visible in the counter.

On Day-1 of listing, Nexus Select Trust REIT Ltd touched a high of Rs104.90 on the BSE and a low of Rs.102.27. The premium sustained through the day since the listing price turned out to be the low price of the day. In fact, if you look at the range of prices, the stock opening price turned out to be the low point of the day and the stock closed very near to the high price of the day. In an otherwise slow moving industry like REITs, the positive sentiments in the market helped to augment the strength in the counter. On Day-1 of listing, the Nexus Select Trust REIT Ltd stock traded a total of 8.37 lakh shares on BSE amounting to value of Rs8.69 crore on the first day.  The order book during the day showed a lot of buying with the buy orders far exceeding the sell orders at any point of time. Towards the end, some selling pressure was visible in the counter.

 While the volumes on the BSE were not as much as on the NSE, the trend was broadly similar. The order book through the day showed a lot of buying pressure but closed the day with some overhang of selling, which pulled down the closing price from the highs of the day. We have to see if the stock becomes a buy on dips or sell on rises from the next trading day. The stock strength can also be attributed to the markets remaining robust.  On the NSE, out of the total 350.70 lakh shares traded during the first day of trading, the deliverable quantity represented 323.12 lakh shares or a deliverable percentage of 92.14% on the NSE. That shows a lot of delivery buying. Even on the BSE, out of the total 8.37 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 5.44 lakh shares representing total deliverable percentage of 64.97%. 

At the close of Day-1 of listing, Nexus Select Trust REIT Ltd had a market capitalization of Rs.15,795 crore with an issued capital of 151.50 crore shares.