Barring Devyani International, which listed at a premium of 57% over its issue price, all the other three counters made a flat debut.
Exxaro Tiles got listed at a mild premium of 5 per cent to Rs 126 over its issue price of Rs 120. Krsnaa Diagnostics made its entry at a price of Rs 1,025, just 7 per cent above its issue price of Rs 954. Windlas Biotech listed at a 5 per cent discount to its issue price of Rs 460.
Devyani International, on the other hand, listed at a premium of 57 per cent at Rs 141 over its issue price of Rs 90 but investors booked profit in the counters and it slipped to Rs 120.75, 14 per cent lower during intraday session.
Arijit Malakar, Head of Research (Retail) of Ashika Stock Broking, said listing gain is for traders, whereas long-term investors should look at IPOs from an investment perspective.
“Devyani International and Krsnaa Diagnostics have good fundamentals and strong traction in their respective industries. Both sectors have been under spotlight after the Covid-19 pandemic,” he added. “Windlas Biotech and Exxaro Tiles are small players in their respective industries and investors should look for large established players in these sectors,” he said.
According to market experts, the recent selling spree in the broader market has dampened sentiments in the primary market as well, affecting listing pops.
Astha Jain of Hem Securities suggested that investors should book partial profits in Krsnaa Diagnostics and Exxaro Tiles. “It is not a good time to enter these counters,” she suggested. “Investors should wait for a few sessions for the prices to settle down and make a new position in the new entrants.”
Recent IPOs like that of Glenmark Life Sciences, Rolex Rings, Exxaro Tiles, Windlas Biotech and Krsnaa Diagnostics have defied grey market signals and made a tepid debut.
“Grey market premium should not be the parameter for building expectations for a listing pop,” Jain advised. “Retail investors should compare the listing gains with other alternatives like bank fixed deposits and then take a judgement.”
Malakar believes that momentum in the primary market will continue as benchmark indices are hitting record highs. “The IPO frenzy is not going to cool off any time soon as a lot of new-age companies will hit the market in months to come,” he added.
