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HMA Agro Industries, a frozen buffalo meat exporter, started trading before 10 am on the National Stock Exchange (NSE), according to a report in the Moneycontrol.
HMA Agro Industries placed new orders on the NSE at 9:55 am.
The NSE conducts a pre-open session for listing of securities and orders are entered between 9:00 am and 9:45 am. Following this, orders are matched for price discovery, and between 9:45 am and 10 am, the price remains stable. After 10 am, the stock starts trading and new orders can be placed.
Also Read: HMA Agro makes decent debut; stock lists at 7% premium over issue price
However, in the case of HMA Agro Industries, the stock price was fluctuating before 10 am. At 9:55 am, the stock touched Rs 632, 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 may have resulted in unrealised loss for several investors, according to the Moneycontrol report. However, those who were aware of this glitch could have used this as an arbitrage opportunity. When the stock had touched Rs 660-levels on the NSE, it was still Rs 615 on the Bombay Stock Exchange (BSE).
HMA Agro Industries recorded bids 1.62 times its issue size. Retail investors had bought 96 per cent shares of the allotted quota, while the reserved portion of qualified institutional buyers was subscribed 1.74 times, and that of high net worth 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.
