Shares of Sambhv Steel Tubes are already trading 44% higher than their issue price of ₹82 per share. At the close of trade on Monday, the stock had a market cap of close to ₹3,500 crore.Sambhv Steel Tubes Ltd., a manufacturer of Electric Resistance Welded (ERW) steel pipes and structural tubes in India, made its stock market debut on July 2. Within nine trading days, the stock finds itself under Stage 1 of the Short-term Additional Surveillance Measures (ASM) framework.Five out of those nine trading sessions have seen the stock have price movements of 5% or more in either direction, including the day of its listing.
But when does a stock enter the short-term ASM framework?
For the first stage, stocks that witness close-to-close price variation, based on corporate action adjusted prices is more than 25% in either side within five trading sessions. Sambav had ended its listing day with gains of 19% and followed it up with another 4% advance on July 3. The stock gained another 12% on July 8, 8% on July 9 and 5.1% on July 10.
The other criteria is the fact that the concentration of Top 25 clients, account for 30% or more of the combined trading volume of BSE & NSE in the stock in five trading days.
Another criteria is stocks witnessing close-to-close price variation, based on corporate action adjusted prices of 40% or more in either direction within 15 trading sessions. Sambhv is yet to have 15 trading sessions.
What Happens To Stocks Under Stage 1 Of the Short-term ASM?
Applicable margin rate for such stocks will be 1.5 times the existing margins or 40%, whichever is higher, subject to maximum rate of margin capped at 100%.
Top 10 clients, based on the gross traded value, subject to their traded value being greater than ₹10 lakh, will be levied 100% margin on their traded value at the end of the day.
Once such a stock is identified, the exchange will seek clarification from the company whether any corporate announcement needs to be shared with the market.
A surveillance dashboard shall also be displayed on the Exchange website mentioning the names of such stocks and other relevant details to inform the investors.
Shares of Sambhv Steel Tubes ended 6% lower on Monday at ₹117.57, which is 44% higher than its issue price of ₹82 per share. At the close of trade on Monday, the stock had a market cap of close to ₹3,500 crore.Continue Reading
