Vertexplus Technologies IPO lists at 5.21% premium, holds up

Vertexplus Technologies IPO had a strong listing on 15th March 2023, listing at a sharp premium of 5.21%, 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 Vertexplus 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 Vertexplus 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 15.53X for the retail portion, 35.15X for the HNI / NII portion and 1.43 times for the QIB portion, the overall subscription was quite healthy at 11.01X. It is appreciable that despite a moderate subscription and weak sentiments in the market, the stock of Vertexplus Technologies has done well on the IPO listing day.

The SME IPO of Vertexplus Technologies Ltd was priced in the range of Rs. 91 to Rs. 96 and most calculations here are based on the upper price band of Rs. 96 per share. On 15th March 2023, the stock of Vertexplus Technologies Ltd listed on the NSE at a price of Rs. 101, a premium of 5.21% on the IPO issue price of Rs. 96 (based on upper band). However, the stock bounced sharply from lower levels and it closed the day at a price of Rs. 106.05, which is 10.47% 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% with only buyers and no sellers.

On Day-1 of listing i.e., on 15th March 2023, Vertexplus Technologies Ltd touched a high of Rs. 106.05 on the NSE and a low of Rs. 101 per share. In short the opening price turned out to be the low point while the stock closed at the high point of the day. Incidentally, the closing price also represented the upper circuit 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 as well as moderate subscription for the IPO of Vertexplus Technologies. The stock closed at the 5% upper circuit with 8,400 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 Vertexplus Technologies Ltd stock traded a total of 4.73 lakh shares on NSE SME segment amounting to value of Rs. 486.70 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 Vertexplus 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 purely represents the delivery volumes.

At the close of Day-1 of listing, Vertexplus Technologies Ltd had a market capitalization of Rs. 58.11 crore with free-float market cap of Rs. 11.04 crore. It has a total of 54.80 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 4.73 lakh shares during the day is accounted for only by delivery trades.

Vertexplus Technologies Limited is a 13-year-old company incorporated in the year 2010 and it is an ISO certified Information Technology company. Its broad areas of specialization include consulting, outsourcing, infrastructure, and digital solutions and services. It offers its services to old economy and to the new economy sectors. The idea is to help the company manage its business life cycle by leveraging on technology. In short, Vertexplus Technologies collaborates with the companies for their evolving Information Technology needs and supports their business with enabling solutions. It currently offers the Off-shore Model, the On-site Model, the Hybrid Model, the Global Model, and the Strategic Partnership model.

Vertexplus Technologies IPO had opened for subscription on 02nd March 2023 and closed for subscription on 06th March 2023 (both days inclusive). The basis of allotment was finalized on 10th March 2023 and the stock listed on the bourses on 15th March 2023 on the NSE SME segment. The NSE SME is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. While Beeline Capital Advisors Private Ltd were the merchant bankers to the issue, Skyline Financial Services was the registrar to the IPO and Prabhat Financial Services was the official market maker.