Multibagger IPO: Gandhar Oil share price lists at bumper premium. Should you book profit?
Multibagger IPO: Shares of Gandhar Oil Refinery Ltd listed on Indian bourses at bumper premium during special pre-open session on Thursday. Gandhar Oil IPO listed on NSE at ₹298 per share levels, delivering to the tune of 76 per cent premium against upper price band of ₹169 apiece.
However, shares of the white oil maker company extended its listing gains and went on to touch intraday hihg of ₹344.05 per share within few minutes of share listing, extending the listing gain of allottees to the tune of 103 per cent against upper price band of the public issue. According to stock market experts, Gandhar Oil Refinery shares have got the advantage of post-listing euphoria in the over-crowded primary market.
But, while delivering multibagger return to the allottees, valuation gap of Gandhar Oil share price against its peers has narrowed down and hence one should book profit and exit. On what next after multibagger return from the public issue, Rajan Shinde, Research Analyst at Mehta Equities said, "Post listing, we believe the valuation gap has narrowed to GANDHAR peers and hence expecting limited upside from the current levels, hence we had recommended allotted investors to book listing day profits which is over and above our expectations." Mehta Equities expert went on to add that Gandhar Oil IPO had a strong listing mainly on the back of reasonable IPO valuation when compared to its peers which were trading high.
As the valuation gap has narrowed down after more than 100 per cent return, one should book profit as stock may not move further upside till there is some correction in the stock. Also Read: Metro Brands shares jump nearly 9% to hit 52-week high on Foot Locker deal Advising allottees to book profit and exit, Arun
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