Shares of INOX India (INOXCVA) made their debut on the stock exchanges at a premium of 44 per cent, providing a decent listing pop to investors, albeit lower than what the grey market premium had indicated.
INOX India’s shares started trading on the National Stock Exchange (NSE) at Rs 949.65 per share, 43.95 per cent higher than the IPO’s issue price of Rs 660. Meanwhile, on the Bombay Stock Exchange (BSE), the share price debuted at Rs 933.15 apiece.
While INOX India made a solid debut on Dalal Street, its potential was cut short by the poor sentiment on Dalal Street, which has under pressure since yesterday due to rising Covid-19 cases in India and across the world.
In such a scenario, should investors sell their stake and book profits or hold on for long-term gains?
According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, INOX India has the potential to deliver strong gains in the long term.
“Inox India entered the secondary market today at a listing price of Rs. 949, a gain of around 43 per cent over its issue price of Rs. 660. The IPO received a huge subscription of 61.28x. Though we can consider it a decent listing, it is still below expectations, and the reason behind this is poor market sentiment,” Nyati said.
She explained that INOX India is the leading cryogenic equipment supplier in India, and it has been benefitting from rising demand across multiple sectors such as healthcare, space exploration, and even food processing.
Nyati went on to add that the company has a diversified product portfolio and a strong order book, all of which are likely to pave the way for strong growth in future.
“With strong fundamentals and a growing market, the company has the potential for long-term value creation; thus, we recommend holding it with a long-term view. Also, fresh buying at a lower level can be considered,” she added.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)