MT Educare Limited made its debut on the bourses yesterday and had a great day. The company had issued shares in a fresh offer and an offer for sale in the price band of Rs 74-80. The price discovery of the issue happened at Rs 86.05 which was a gain of a little over 7.5%. The share opened at Rs 86.05 which was also the low of the day on both the exchanges and closed at the high of the day which was Rs 90.35. The close was at the maximum permissible 5% gain allowed on listing and for the ten days of trading when it is traded in ‘trade-to trade’ category. This category means that every trade is settled by delivery and no netting of is permitted.

The stock hit the upper circuit level within minutes of opening for trade and remained locked at the upper circuit level throughout the trading day. Even though the share was locked at upper circuit trades have continued throughout and some trading or the other has happened. The share saw a total trading of 23,51,209 shares and this volume was 19% of the IPO size of 123.75 lac shares. The volume considering the circuit at virtually the open itself is significant. There was buying from one HNI and as per details available in bulk trading on the two exchanges, a total of 8.88 lac shares have been purchased by the person in his and family names.

The weighted average of the day’s trade was 89.40 on the BSE and Rs 89.76 on the NSE. The net gain for the investor at the closing price was Rs 10.35 or 12.94%.

The price chart shows how the stock hit the upper circuit or the maximum permissible upper limit of 5% at virtually the open and remained there throughout the trading day. Volume kept on happening throughout the day and it appears that retail investors may have been selling.

The IPO was subscribed an overall 4.8 times with the QIB portion subscribed 6 times and HNI portion subscribed 8 times. Retail portion was subscribed 2.17 times.

The issue has opened well and one would expect the buying fervour witnessed on the opening day to continue for some time.