How do we find the circuit limits for an IPO on listing date before it is shown on bse/nse websites on listing date ?
There are no circuit limits on the listing day, this is done to facilitate price discovery for the stock.
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Thanks Karthik for the reply.
Could you please explain what is “price discovery” ?
Also, for ex: RADIOCITY stock on bse (listing date) shows below circuilt limits. what is “price discovery” in this case ?
Circuit Limits 504.00/336.00
Price discovery is the process of identifying a right price for the stock. This happens naturally in the market by means of the demand and supply. For example, Infy is trading around 1000, why do you think its trading at 1000 and not 500 or 1500? This is because the markets have discovered the price of Infy at 1000.
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Has this rule been changed? I asked because I noticed Burger King (which listed today) has hit a circuit limit.
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No share except FnO share can trade in market without there being a circuit limit ranging from 2 -5-10 and maximum 20 . On listing or re-listing day price is discovered from 9 am to 9.45 am through call auction method and circuit is applicable on this discovered price.
RIGHTS entitlement (RE ) have 40% circuit limit.
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There is no circuit limit for price discovery, generally during pre-market session exchange has 20% price band applicable either side.
Once the stock starts trading after price discovery period is over on listing day, for issues where size is more than Rs. 250 crores, Circuit Limit of 20% will be applicable from equilibrium price and for issues with size lesser than Rs. 250 crores, Circuit Limit of 5% will be applicable from equilibrium price.
You can refer to this SEBI document for more information.
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For lsiting price discovery for IPO, I see that there is some upper limit during the pre-listing session(9-10 am). For example Indigo had it at 75% and I wasn’t able to bid for more than 2607.5 Rs for Indigo during that time. Is this 75% there for all IPOs?