In terms of the best debut on Dalal Street, Sigachi Industries fell behind the spectacular first innings of Tantia Constructions, which entered the secondary markets in April 2006. At that time, the counter delivered a 260 per cent listing pop at Rs 180 against an issue price of Rs 50. However, the stock is just a shade of its former glory, trading down 83 per cent from the issue price. In fact, it has turned into a penny stock with daily volumes in just a few thousand shares.
Sigachi Industries’ debut placed it at the second best on Dalal Street. It is currently trading Rs 598.50, up 3.7 times over its issue price of Rs 163.
Among other best debuts are the 2013 issue of GCM Securities and the 2005 issue of FCS Software Solutions that delivered over 200 per cent returns on the first day. Interestingly, both of them are penny stocks today.
Paras Defence and Space Technologies, Indraprastha Gas, Salasar Techno Engineering, Astron Paper & Board Mill and TV Today Network are other issues that gave multibagger returns on the first day. Nandan Denim, Chemcon Speciality Chemicals, Prevest Denpro, Happiest Minds Technologies, GR Infraprojects, Route Mobile, Avenue Supermarts and IRCTC also saw over 100 per cent debut gains.
So, will Sigachi also turn into a disappointment just like other multibagger peers? No one can say for sure. However, most analysts advise booking profits for now.
Rahul Sharma, co-founder, Equity99, says: “Long-term investors are advised to remain invested, considering niche product offerings of the company. However, considering listing premium, short-term investors are advised to book their profits as their capital is almost three times in 10 to 15 days. For fresh entry, advice would be to wait for declines and not to enter fresh now.”
Apart from Sigachi, two other issues also debuted on Monday. However, they could not live upto the fanfare. Policybazaar operator PB Fintech saw 17 per cent gain over issue price while SJS Enterprises was flat at opening.
While we are talking about the best debuts, there are also very bad ones. Next Mediaworks, an issue that came out in 2001, takes the cake as the worst debutant with a 43 per cent discount listing.
Vaswani Industries, Rathi Steel & Power, Bonlon Industries, SSPN Finance, UH Zaveri, Karda Constructions, Amsons Apparels, Allcargo Logistics and Cadila Healthcare are others that saw forgettable debuts, listing at 20-32 per cent discount.
