After a series of lull in IPO listings, Ami Organics emerged as a jinx breaker as the scrip surged 53 per cent on Day 1, followed by a 20 per cent rise the next day.
Shares of the Gujarat-based company hit a new high of Rs 1,121.45 on Wednesday, which is 84 per cent above the issue price of Rs 610.
Amid the ongoing volatility in the secondary market, most analysts suggest IPO investors to take some money off the table now.
Saurabh Jain, Research Analyst, Marwadi Shares and Finance, said the listing was in line with market expectations. He recommended investors to book profits partially and hold the remaining stake for the long-term.
“The company got listed at Rs 910, implying a P/E valuation of 58.85 times, at par with its peers. The issue is fully priced in the short-term,” he added.
Joshi expects the company to post good numbers in the longer run after the recent expansion. “The premium, niche and diversified product portfolio will aid performance of the company in future,” he said.
The Rs 570 crore IPO, which was sold from September 1 to September 3, was subscribed 64.54 times, thanks to a strong response from institutional and HNI investors.
Vikas Jain of Reliance Securities said that the stock may move to Rs 1,250-1,280 levels in the short term. “Investors should completely book profit at these levels and wait for broader market correction to re-enter the counter.”
Long-term investors can take out the cost to preserve capital and continue to hold stake, Jain suggested.
Ami Organics manufactures advanced pharmaceutical intermediates used in select therapeutic areas such as anti-retroviral, anti-inflammatory, antipsychotic, anti-cancer, anti-Parkinson, antidepressant and anti-coagulant.
Rajnath Yadav, Equity Research Analyst at Choice Broking, suggested investors should completely exit their positions at current levels after considering the current market situation.
