Systango Technologies IPO Listing Day Performance

Systango Technologies IPO had a strong listing on 15th March 2023, listing at a sharp premium of 8.9%, but subsequently bounced and closed much above the listing price at the close of trading. In a sense, the markets came under pressure as the Nifty slipped below the psychological 17,000 mark, but the stock of Systango Technologies managed to hold on and closed with smart gains for the 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.

The stock of Systango Technologies Ltd did show some bouts of volatility during the day, but closed above the listing price and 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. With subscription of about 66.59X for the retail portion, 230.36X for the HNI / NII portion and 14.10 times for the QIB portion, the overall subscription was quite healthy at 64.99X. While this should have helped a much better listing, the weak sentiments in the market, probably, hampered the listing performance of the stock, which could have been still a lot better.

The SME IPO of Systango Technologies Ltd was priced in the range of Rs. 85 to Rs. 90 and most calculations here are based on the upper price band of Rs. 90 per share. On 15th March 2023, the stock of Systango Technologies Ltd listed on the NSE at a price of Rs. 98, a premium of 8.9% on the IPO issue price of Rs. 90 (based on upper band). However, the stock bounced sharply from lower levels and it closed the day at a price of Rs. 102.90, which is 14.33% above the IPO price and 5% above the listing price of the stock on the first day of listing. In short, the stock had closed the day exactly at the upper circuit price for the stock of 5%.

On Day-1 of listing i.e., on 15th March 2023, Systango Technologies Ltd touched a high of Rs. 102.90 on the NSE and a low of Rs. 95 per share. Incidentally, the closing price also represented the high price of the stock for the day. What is truly appreciable is that the stock closed strong despite the overall Nifty falling by over 71 points on 15th March 2023 and dipping below the psychological level of 17,000 on the Nifty levels. The stock closed at the 5% upper circuit with 27,200 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 Systango Technologies Ltd stock traded a total of 14.27 lakh shares on NSE SME segment amounting to value of Rs. 1,413.36 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 that Systango Technologies 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 was only delivery volumes.

At the close of Day-1 of listing, Systango Technologies Ltd had a market capitalization of Rs. 150.94 crore with free-float market cap of Rs. 28.68 crore. It has a total of 146.69 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 14.27 lakh shares during the day is accounted for only by delivery trades.

Systango Technologies Ltd is a company with a 20-year pedigree and was established int eh year 2004 (the same year that TCS came out with its IPO). Systango Technologies Limited is engaged in the business of providing software solutions and it almost operates as a SAAS platform for web enablement. The offerings of Systango Technologies enable companies to design, implement and manage their customized digital platforms independently without being overly dependent on implementation by third parties. These platforms designed by Systango include Web2, Web3, and mobile applications with a strong emphasis on data and analytics. That is already being seen as the future of the IT industry.

Apart from software solutions, it also offers development of mobile apps, DeFi (Decentralized finance), Data Engineering, implementation of blockchain, cloud computing and a lot more. It caters to a slew of high-profile sectors like Hospitality, Proptech, FinTech, Fantasy Sports and many more. Over the years, Systango Technologies has emerged as an end-to-end solutions provider and offers professional and technical services. Their end-to-end technology solutions support organization in effectively implementing innovations in their system and keep up with the new-age world. Hem Securities was the lead manager to the issue while Bigshare Services Private Limited is the registrar to the SME IPO of Systango Technologies Ltd.