Listing glitch: HMA Agro Industries started trading before 10 am on the NSE

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HMA Agro Industries started trading on the National Stock Exchange before 10 am, several investors flagged on Twitter. Moneycontrol also verified this with screenshots of new orders being placed on the NSE at 9:55 am.

NSE conducts a special pre-open session for a listing of securities. Orders are entered between 9:00 am to 9:45 am. Following this, orders are matched for price discovery. Between 9:45 am to 10 am, the price remains stable. After 10 am, the stock starts trading and new orders can be placed.

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However in the case of HMA Agro Industries, the stock price was fluctuating before 10 am. The stock touched levels of Rs 632 around 9:55 am while the indicative opening price was Rs 625 on the NSE. At 10 am, the stock touched Rs 664.

Market participants said that this glitch has probably resulted in notional loss for several investors. For instance, an investor who got shares allotment at issue price of Rs 585 could have sold at Rs 664, at 13 percent premium but probably lost out on the opportunity because of the glitch in listing time.

The vice-versa of notional profit is also possible, they added.

For those who were aware of this, the glitch could have been used by them as an arbitrage opportunity, said some dealers. When the stock had touched Rs 660-levels on the NSE, it was still Rs 615 on the BSE.

Moneycontrol has reached out to NSE for a clarification. The copy will be updated when we hear back.

HMA Agro Industries, the frozen buffalo meat exporter, saw bids 1.62 times its issue size. Retail investors had bought 96 percent shares of the allotted quota, while the reserved portion of qualified institutional buyers was subscribed 1.74 times, and that of high networth individuals 2.97 times during June 20-23.

At 11 am, the stock was quoting Rs 630.70 on the NSE and Rs 630.15 on the BSE.