Vasa Denticity IPO lists at 64.8% premium, gains further

Vasa Denticity IPO had a strong listing on 02nd June 2023, listing at a sharp premium of 64.8% on the NSE SME-IPO segment, but subsequently gaining still further to decisively close above the IPO price and also the listing price. In a sense, the markets were positive on Friday and that helped sentiments on the stock as the Nifty closed above the 18,500 mark; well above its last resistance level of 18,400. On a day when the market sentiments were strong, Vasa Denticity managed to close very strong 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 possible global slowdown are the major talking points and continue to keep the markets under pressure. However, despite these challenges, the stock of Vasa Denticity managed to hold strong for the day on listing day.

The stock of Vasa Denticity 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. Vasa Denticity Ltd opened 64.8% higher and the opening price turned out to be the low price for the day. With subscription of 37.26X for the QIB portion, 58.07X for the retail portion and 115.13X for the HNI / NII portion; the overall subscription was quite healthy at 67.99X. The subscription numbers were so strong that it allowed the stock to list at a huge premium and then sustain the premium post listing and close still higher for the day.

The SME IPO of Vasa Denticity Ltd was priced at the upper end of the band of ₹128 via book building issue. On 02nd June 2023, the stock of Vasa Denticity Ltd listed on the NSE SME-IPO segment at a price of ₹211, a premium of 64.8% on the IPO issue price of ₹128. However, the stock bounced sharply even from these levels as the opening price became the low point for the day and the stock closed exactly at the high point of the day. The closing price of ₹221.55, which is 73.1% above the IPO price and 5% above the listing price of the stock on the first day of listing was also the high point of the day. In a nutshell, the stock of Vasa Denticity 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. In SME IPOs, the 5% movement is the maximum permitted to circuit.

On Day-1 of listing i.e., on 02nd June 2023, Vasa Denticity Ltd touched a high of ₹221.55 on the NSE and a low of ₹211 per share. The opening price turned out to be the low point while the stock closed exactly at the high 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 closing with moderate gains and the markets continuing to be remain volatile through the day. The stock closed at the 5% upper circuit with 73,000 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 SME IPO segment. On Day-1 of listing, the Vasa Denticity Ltd stock traded a total of 18.03 lakh shares on NSE SME segment amounting to value of ₹3,859.68 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 Vasa Denticity 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, Vasa Denticity Ltd had a market capitalization of ₹354.84 crore. It has a total of 160.16 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 18.03 lakh shares during the day is accounted for only by delivery trades.

Here is a quick brief on the background and business details of Vasa Denticity Ltd. The company is an SME IPO on the NSE which opened for subscription on 23rd May 2023 and has listed on the bourses on 02nd June 2023. Vasa Denticity was incorporated in 2016 for marketing and distribution of a comprehensive portfolio of Dental Products. It sells dental products through the offline and the online models. Their product portfolio comprises of consumables, instruments, equipment, and accessories for diagnosing, treating, and preventing dental conditions. Their online portal "Dentalkart.com" looks to improve smiles through its internet platform and mobile based application. It is also attempting an omnichannel presence for its product offerings.

The online channel offered by Vasa Denticity offers 300 domestic and international brands with a comprehensive product range of over 10,000 dental products in its catalogue. It manages logistics through its centralized distribution hub measuring 13,000 SFT at Gurugram. Of these, 30 brand or 10% of the brands are proprietary brands of Vasa Denticity. It also has a strong R&D franchise to improve performance of its products. The fresh funds will be used by the company to fund its working capital needs and to also spend on enhancing the brand visibility; something very critical when it comes to establishing and nurturing an online internet presence for the business.