WomanCart IPO Listing Day Performance

Premium listing for WomanCart Ltd, then upper circuit

WomanCart Ltd had a very strong listing on 27th October 2023, listing at a premium of 36.05%, and subsequently hitting and closing at the 5% upper circuit for the day, the maximum permissible movement either ways. Of course, the stock closed comfortably above the listing price and the IPO issue price at the close of trading on 27th October 2023. The stock performance was also helped by the fact that the markets had shown a sharp recovery on 27th October 2023, after nearly 6 consecutive days of losses in the market during which period, the Sensex had lost close to 3,000 points. On Friday, 27th October 2023, the Nifty closed 190 points higher while the Sensex closed 635 points higher. In the last few days, the Nifty and Sensex had fallen sharply and there were apprehensions about the listing. However, the stock performance in the market overall helped the sentiments of WomanCart on the day of listing. The weakness in the market in the last few days had bene on account of the geopolitical risk in the Middle East and Wes Asia as well as the sharp spike in the US bond yields. However, Friday did come as a big relief to markets.

Impact of the subscription story for WomanCart Ltd

Let us now turn to the subscription story of WomanCart Ltd. With hefty subscription of 71.94X for the retail portion, and 56.30X for the HNI / NII portion; the overall subscription was extremely healthy at 67.48X. The IPO was a fixed price issue with the IPO price already fixed at ₹86 per share. The stock listed at a strongly positive premium of 36.05%, on a day when the market sentiments were extremely supportive after several days of weakness. On Friday, the listing of WomanCart Ltd benefited from the positive cues from the subscription levels and the market sentiments. The subscription normally impacts the price discovery in book building issues and the listing price. While this was a fixed price issue, the strong subscription had a positive impact on the ability of the stock to hold gains in a market which had just shown one day of recovery today, after nearly 6 days of consistent weakness.

Stock closes Day-1 at 5% upper circuit, after a strong opening

Here is the pre-open price discovery for the SME IPO of WomanCart Ltd on the NSE.

Data Source: NSE

The SME IPO of WomanCart Ltd was priced at ₹86 per share, via the fixed IPO pricing method. On 27th October 2023, the stock of WomanCart Ltd listed on the NSE at a price of ₹117, a premium of 36.05% over the IPO issue price of ₹86. However, the strong market sentiments in the market on 27th October 2023, pushed the stock of WomanCart Ltd even higher as it hit the 5% upper circuit quite early in the trading day and just stayed put at that level. The stock closed exactly at the 5% upper circuit limit of ₹122.85 per share. The stock had an upper circuit limit of ₹122.85 for the day and a lower circuit limit of ₹111.15 for the day. After opening at ₹117 per share for the day, the stock never went below that price and the opening price turned out to be the low price of the day. The closing price was exactly the upper circuit price and there was not much of volatility in the stock price on listing day.

Being an SME IPO on the NSE, the stock of WomanCart Ltd was subjected to 5% circuit filter on listing day and was also in the ST (trade to trade) segment. That means, only delivery trades are permitted on the stock. 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 turned out to be the lowest point of the day and the stock, after hitting the 5% upper circuit in the early part of the day just stayed at that level till close. During the day, the stock hit the upper circuit and never retreated from that level. On the NSE, the stock of WomanCart Ltd has been admitted to trade in the ST category. The ST category is specifically for the SME Emerge segment of the NSE with compulsory trade to trade settlement. On such stocks, netting of positions is not permitted and every trade has to be settled by delivery only.

How prices traversed for WomanCart Ltd on listing day

On Day-1 of listing i.e., on 27th October 2023, WomanCart Ltd touched a high of ₹122.85 on the NSE and a low of ₹117 per share. The high price of the day was exactly the upper circuit limit price of the stock which was also the closing price of the day. In fact, the closing price of the day was not just 5% above the listing price but also 42.85% above the IPO price of WomanCart Ltd. The stock was hardly volatile and the low price of the day was the opening price, which was never visited again during the day. The high price was the upper circuit, which was the close for the day. The listing was also helped by the fact that the Nifty was 190 points higher in trade while the Sensex was 635 points higher in trade on Friday, 27th October 2023.

Through the day, the stock stayed above the IPO issue price and the listing price at any point of time stayed put at the upper circuit price till the close of the day. In terms of the circuit filter limits, the stock of WomanCart Ltd had an upper circuit filter limit of ₹122.85 and a lower circuit band limit of ₹111.15. During the day, the stock of WomanCart Ltd never went below the listing price but hit the upper circuit pretty early on and just stayed there. The stock closed strong for the day with 75,200 buy quantity and no sellers in the counter. For the SME IPOs, it may be recollected, that 5% is the upper limit and also the lower circuit on the listing price on the day of listing.

Robust volumes for WomanCart Ltd on listing day

Let us now turn to the volumes of the stock on the NSE. On Day-1 of listing, the WomanCart Ltd stock traded a total of 5.424 lakh shares on NSE SME segment amounting to trading value (turnover) of ₹648.28 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 upper circuit with huge pending buy orders at the close, with limited price volatility during the day. It must be noted here that WomanCart 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, WomanCart Ltd had a market capitalization of ₹51.70 crore with free-float market cap of ₹22.02 crore. It has a total of 42.08 lakh shares as the issued capital of the company. As stated earlier, since the trading is on the T2T segment, the entire volume of 5.424 lakh shares during the day is accounted by delivery trades only, barring some market trade exceptions in the market.