Shares of the company were listed at a premium of 53% on the National Stock Exchange (NSE) at Rs 90, compared to the issue price of Rs 59. On BSE, the certificate debuted at Rs 89 .40 on BSE, a premium close to 52 percent.
After the listing, the counter failed to register further higher as investors, who received the shares in the IPO, recorded profits after a strong listing.
Shares of Electronics Mart India jumped to Rs 91 before falling to Rs 83.25 on BSE, its intraday lows till 11:45 am. Market analysts remain split on any immediate move in the listing price. They unanimously suggest avoiding making a new entry on the meter.
Pravesh Gour, Principal Technical Analyst,
advised investors to lock in listing gains and said only aggressive investors should consider making a long-term commitment to the company.
Those who requested listing gains can maintain a stop loss of Rs 77, he said, adding that the company operates in a highly competitive market with limited market share.
Electronics Mart India raised Rs 755 crore via its initial stake sale, which remained open for subscription between October 4-7. The company sold its shares in the range of Rs 56-59 each.
The issue was globally subscribed 71.93x, with the quota for QIB investors reaching a huge subscription of 169.54x. The portions for HNI and retailers were subscribed 63.59 times and 19.72 times respectively.
Astha Jain, senior research analyst at Hem Securities, suggested investors reserve 25-50% of profits in the company and hold the remaining stake for the longer term.
“The company delivered returns on expected lines, but it needs to take money off the table,” she said. “At current levels, new entries should be avoided.”
Echoing a similar view, Arafat Saiyed, research analyst,
Securities said investors can reserve half of the profits and keep the remaining part for further upside.
“After a meteoric debut on the exchanges, new entry is not advised. You have to wait for a decent correction to enter the meter,” he suggested.
Established in 1980, Electronics Mart India is the fourth largest retailer of consumer durables and electronics in India and has a leading position in South India, particularly in the states of Telangana and Andhra Pradesh .
Electronics Mart India operates and manages 112 stores with a shopping area of 1.12 million square feet, spread across 36 cities.
Elara Capital’s Harshit Kapadia suggested investors hold the stock longer. “We can keep the stock because there is more steam in the counter, but we must avoid a new entry. »
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)