Vinsys IT Services India IPO lists at 61.91% premium, rises further

Strong listing for Vinsys IT Services India IPO, and a stronger close

Vinsys IT Services India IPO had a strong listing on 11th August 2023, listing at a sharp premium of 61.91%, and gained further to close at the 5% upper circuit over the listing price. For the day, the stock closed comfortably above the IPO price as well as the listing price. Ironically, this extremely solid performance came on a day when the markets were under extreme pressure as the Nifty fell by 115 points on the day and the Sensex fell by 366 points for the day on 11th August 2023. It was more about weekend profit booking as traders chose to stay light ahead of the weekend and after a volatile week when the Nifty continued to face resistance at the 19,600 levels and retreated quite sharply from these levels. However, despite such a weak day of trading, the listing of the stock of Vinsys IT Services India Ltd was at a smart premium of 61.91% and on top of that, the stock also gained further strength to close the day at the 5% upper circuit limit for the day. Here the upper circuit is calculated on the listing price and not on the IPO price.

The stock of Vinsys IT Services India IPO did show a lot of strength on opening and tried to hold on to higher levels, which eventually it succeeded in doing. Despite the pressure of the market correction overall that was visible on the Nifty and also on the Sensex, the stock almost appeared to be unperturbed. The stock closed not only well above the IPO issue price but edged up further to reach the maximum possible limit of the upper 5% circuit for the day. Being an NSE SME IPO, it is only traded on the SME segment of NSE, better called the NSE Emerge. Vinsys IT Services India Ltd opened 61.91% higher and the opening price turned out to be very close to the low price for the day. With subscription of 111.56X for the retail portion and subscription of 105.75X for the HNI / NII portion, and 36.95X for the QIB portion; the overall subscription was extremely healthy at 89X. The subscription numbers were very encouraging and such strong numbers allowed the stock to list at a huge premium even on a day when the market sentiments were relatively weak. However, what is more appreciable is the fact that the stock not just managed to sustain these levels but even garnered enough traction to pull itself up to the upper circuit of the day at 5% limit.

Stock closes Day-1 at substantial premium

Here is the pre-open price discovery for the SME IPO of Vinsys IT Services India IPO on the NSE.

Data Source: NSE

Vinsys IT Services India IPP SME was priced in the price band of ₹121 to ₹128 per share via the book building format. On 11th August 2023, the stock of Vinsys IT Services India Ltd listed on the NSE at a price of ₹207.25, a premium of 61.91% on the IPO issue price of ₹128. Not surprisingly, the price was discovered at the upper end of the band for the IPO, considering the extremely healthy subscriptions levels seen across all the three categories of investors. However, the stock managed to rally further and even scaled the 5% upper circuit for the day as it closed the day at a price of ₹217.60, which is 70% above the IPO issue price and precisely 5% above the listing price of the stock on the first day of listing. To cut a long story short, the stock of Vinsys IT Services India Ltd had closed the day exactly at the 5% upper circuit price for the stock with buy orders for 6,000 shares and no sellers at the maximum possible price for the day. Like the upper circuit price, even the lower 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 very close to the low price of the day.

How prices traversed for Vinsys IT Services India IPO on listing day

On Day-1 of listing i.e., on 11th August 2023, Vinsys IT Services India Ltd touched a high of ₹217.60 on the NSE and a low of ₹200.10 per share. The high price of the day was also exactly the point at which the stock closed for the day, which also represents the upper circuit of 5%. Incidentally, the closing price 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 actually appreciable is that the stock closed strong despite the overall Nifty falling by 115 points on 11th August 2023 and dipping below the psychological level of 19,500 on a closing basis for the listing day. The stock closed at the 5% upper circuit with only buyers and no sellers on the counter. It may be recollected that for the SME IPOs, 5% is the upper limit and also the lower circuit limit based on the listing price on the day of listing. Here the listing price is considered as the base price.

Robust volumes for Vinsys IT Services India IPO on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the Vinsys IT Services India Ltd stock traded a total of 18.45 lakh shares on NSE SME segment amounting to value of ₹3,903.28 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 led the stock to close at the lower end of the circuit filter. It must be noted here that Vinsys IT Services India 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 of 18.45 lakh shares overall purely represents the delivery volumes.

At the close of Day-1 of listing, Vinsys IT Services India Ltd had a market capitalization of ₹319.39 crore with free-float market cap of ₹60.68 crore. It has a total of 146.78 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 18.45 lakh shares during the day is accounted for only by delivery trades, barring a few exceptional adjustment trades in the day.

Read Vinsys IT Services India IPO

Brief on the business model of Vinsys IT Services India Ltd

Vinsys IT Services India Ltd, is an SME IPO on the NSE which had opened for subscription on 01st August 2023. The company, Vinsys IT Services India Ltd, was incorporated in 2008 to provide IT skill development solutions. The company is engaged in offering packages for IT training, IT skill development, IT skill upgradation in line with changing demands, as well as certification domain. It operates through a network of 8 entities and has a strong presence in India and abroad. Its footprint is very strong in the Middle East and in the US. It also offers simple as well as complex high-end digital learning courses.

Vinsys IT Services India Ltd is an ISO 9001:2015 certified organization and also a globally acclaimed individual and corporate training provider. The company already has a legacy of empowering professionals with knowledge for more than 15 years. Till date, the company has successfully trained and certified over 600,000 professionals around the world. Vinsys IT Services India Ltd now boasts of its footprints in countries including Australia, China, India, Kenya, Malaysia, Oman, Singapore, Tanzania, UAE, and the US. Vinsys IT Services India Ltd is a higher reputed player in conducting corporate training and open house workshops in Information Technology, IT Service Management, IT Governance, IT Infrastructure Library, Project Management, behavioural and Management Solutions.