Investors seeking the benefits of the listing should leave the
stock market by March 26 itself, while long-term investors can hold the stock
only if they want to get out better, experts say.
The Kalyan Jewelers had a disappointing market debut, with the
share price declining by 16 percent on March 26. The stock listed at Rs 73.9 on
the BSE, a 15 percent discount on the exit price, which was expected to provide
reduced market conditions and the cost of its IPO.
At the time of publication, it was selling for $ 75.60, down 13.10
percent, with a volume of 26.21 lakh shares on BSE. It opened at Rs 73.95 on
the National Stock Exchange and traded 13.05 percent lower at Rs 75.65, with a
stock volume of 4.12 crore equity.
Experts have advised investors, who want to reap the benefits of
the list, to get out of stock on March 26th and look for better peers in the
same field. Long-term investors can only capture it if they want to get out of
it better, they say.
"Investors who are registered for a profit should consider
selling on the date of the listing,
For those who look long-term, given the presence of pan-India, a
strong network of distribution and supply of various products, they can hold
stock only if they want but due to business rotation and lower limits compared
to Titan Company, its prospects do not look very good.
Prashanth Tapse, AVP Research in Mehta Equities, also recommended
that investors book profits on the day of the listing.
Kalyan Jewelers is one of India's largest jewelry companies, with
107 exhibitions. Gold jewelry has contributed about 75 percent of its peak to
the FY20 and the rest is counted as parts full of jewelry.
"We will not suggest that some of the shares be accumulated
or repurchased as their prices are still very high compared to their listed
counterparts," Garg said. Titan, with better prospects, could be
considered, he said.
Those who were planning to buy shares in Kalyan Jewelers on the
day of the listing should look to their peers for good growth opportunities,
Tapse said.
“We see high competition for both formal and informal players in
the Indian jewelry industry as most of the jewelry industry has informal
players, historically holding a large share of the market, although their
market share has been declining and is expected to continue to decline,” he
said.
The Kalyan Jewelers' rs 1,175-crore public release contains a new
release of Rs 800 crore and a promise of a sale of 375 rupees by existing
shareholders. The new revenue will be used for basic operating capital needs.
Disclaimer:
The views and investment tips expressed by us are not financial advice please
read and check all the details before investing.
source - moneycontrol
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