IT cos soar, dull entry for SFBs in IPO mkt

livemint.com:

₹339.50 per share on the NSE, well above its issue price of ₹311. The stock climbed further, reaching a high of ₹342.70, before closing at ₹321.50, This positive response came after strong investor interest, with the IPO subscribed 59.71 times and exceeded the grey market premium, which had dropped from ₹83 on 8 February to ₹34 on Wednesday. Capital Small Finance Bank opened at ₹430.25 apiece on the NSE, below its issue price of ₹468.

The stock dipped by 10% intraday to ₹421, before closing down 7% at ₹435. Similarly, Jana Small Finance Bank opened at ₹396, below its issue price of ₹414, and even touched ₹365, a 12% decline. Despite Capital’s IPO being subscribed 4.17 times and Jana’s 18.50 times, the listing was a tepid one.

“The primary market is currently buoyant, but investors should be cautious in volatile and consolidating markets. For IPO stocks with stretched valuations, profit booking might occur, especially when quarterly results are awaited," Kranthi Bathini, director of Equity Strategy at Wealth Mills Securities Pvt Ltd told Mint. “However, if recent listings deliver better-than-expected results, these stocks can rebound.

Investors who took positions for long-term investment can hold, while those seeking listing gains can consider booking profits when the stock bounces back," he added. Among these companies, Jana Small Finance Bank has the lowest P/E trailing ratio of 10.15 times. Rashi Peripherals has a P/E trailing ratio of 14.23 times, and Capital Small Finance Bank has the highest P/E trailing ratio of 19.35 times.