RR Kabel share price lists at better-than-expected premium. Buy, hold or exit?

livemint.com:

Stock market today: RR Kabel shares listed at better-then-expected premium of 14 per cent against the issue price of ₹983 to ₹1,035 per equity share. RR Kabel share price opened on BSE at ₹1,179 apiece levels whereas on NSE, it listed at ₹1,180 apiece levels.

This listing is better than the market expectations as both grey market and stock market experts had predicted 8-10 per cent listing premium for the allottees. After listing at 14 per cent premium, RR Kabel share price further went upside and went on to hit intraday high of ₹1,198 apiece on NSE while on BSE, it climbed to intraday high of ₹1,198.05 per share levels.

However, profit booking soon triggered in the scrip and the stock went down to ₹1,143.10 on BSE and ₹1,136.80 on NSE. According to market experts, RR Kabel Ltd is sitting at higher valuations and its PE multiple is higher than its peers as margins of its peers are lower than RR Kabel.

So, one should book listing profits and exit as other stocks of the segment are expected to outperform RR Kabel shares in upcoming sessions. Advising RR Kabel shareholders to book listing profit, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "+ that means 90 per cent of the net proceeds will go to the pockets of promoters offloading their shareholding.

Hence, the public issue won't have much impact on the financials of the company and hence it is expected to remain at higher valuations against its peers." Echoing with Arun Kejriwal's views, Prashanth Tapse, Senior Vice President — Research at Mehta Equities said, "RR Kabel IPO was launched at higher valuations, which was obvious in current market scenario. However, after listing at better-than-expected premium, RR Kabel shareholders are advised