After the solid listing gains, analysts are telling investors to book partial profits and hold the remaining stake for a longer term as both the players are fundamentally sound.
“Investors, who got the allotment, can book partial profits in both the companies,” said Asha Jain of Hem Securities. “We are very bullish on Clean Science and Technology and suggest a portion to be kept in the portfolio for longer term play.”
GR Infra listed at Rs 1,715.85 on NSE, a 105 per cent premium to its issue price of Rs 837. On BSE, the Udaipur-based company listed at a premium of 103.11 per cent at Rs 1,700.
According to Jain, the conservative valuation of GR Infra led to the shape up move for the company. The company issued shares at 8.5 times price-to-earnings (P/E) ratio on FY21 eps basis, which was very much economical compared to the other players.
Similarly, Clean Science and Technology listed at Rs 1,784.40 on BSE, a 98.26 per cent premium to its issue price of Rs 900. On NSE, the scrip listed at Rs 1,755, up 95 per cent.
Jain expects Clean Science to show strong performance in the coming year. “The company may double its topline in the next 2-3 years,” she said.
Likhita Chepa, CapitalVia Global Research, said that recently listed companies have witnessed a sharp rise which has bolstered the sentiment even more for the new debutants.
“Investors who have subscribed the issue only for the listing gains can consider booking profits. Strong balance sheets and growth potential can make them good long term opportunities,” Chepa added.
Amit Jain, Chief Strategist and co-founder, Ashika Wealth Advisory also echoed similar views of booking half the profit, which will take out the capital from the portfolio. “Anyone who took leverage in the IPOs can book profits,” he added.
According to the market experts, there is adequate liquidity in the primary market. Investors do not want to miss the bus, which has created euphoria, they said.
Both the IPOs were sold between July 7 and 9. The issue for GR Infra was subscribed a whopping 102.58 times, whereas Clean Science was subscribed 93.41 times.
