The price disparity remained through the session, with the stock ending 17% over the issue price at ₹160.4 on the BSE; and on the NSE, it closed at ₹131.25 or 4% below the IPO price.
The reason for the gap in stock price on debut could not be ascertained but market participants said arbitrageurs could not take advantage of this price difference on the two exchanges because anyone who bought the stock on Monday could not sell it the same day.
Only those investors who applied to the Veranda IPO and got a subscription would have been able to sell the stock.
In the case of IPOs with size of ₹250 crore or less, all trades are on a trade-for-trade (T-to-T) basis for the first 10 days after listing. When a stock, which is part of the T-to-T segment, is purchased, the buyer must take compulsory delivery.
There is a circuit filter of 5% for stocks whose IPO size is ₹250 crore or less. Compared to the opening price, the stock has ended at a 5% upper circuit to the opening price of ₹125 on the NSE. On the BSE, the stock ended 2% above the IPO price.
The ₹200-crore IPO of Chennai-based Veranda Learning was subscribed 3.53 times. The retail quota was subscribed 10.8 times, the HNI category got 3.9 times subscription while the institutional investors’ quota was subscribed a little over 2 times.
Veranda Learning had posted a loss of ₹8.3 crore and revenue of ₹2.54 crore for the financial year ended March 2021. Its loss was ₹18.3 crore in the six months ended September 2021 on a revenue of ₹15.5 crore.
