Multibagger IPO: Shares of Gandhar Oil Refinery Ltd listed on Indian stock exchanges at a bumper premium during a special pre-opening session on Thursday. Gandhar Oil IPO listed on NSE at ₹298 for stock levels, delivering at a 76 percent premium against an upper price band of ₹169 each. However, shares of the white oil company extended their list gains and went on to touch an intraday high amount of ₹344.05 per share within a few minutes of share listing, extending the listing gain of allottees to the tune of 103 percent against upper price band of the public issue.
According to stock market experts, Gandhar Oil Refinery shares have the benefit of post-listing euphoria in the overcrowded mainstream market. But, while delivering multibagger returns to the allottees, valuation gap of Gandhar Oil’s share price against its peers has narrowed and hence profit and exit needs to be booked.
On what next after a 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 therefore expecting limited upside from current levels, hence we have recommended assigned. investors to book list day profits that exceed 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 compared to its peers that were trading high. As the valuation gap has narrowed after more than 100 percent return, profit should be booked as shares may not move higher until there is some correction in the stock.
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Advising allottees to book profit and exit, Arun Kejriwal, Founder of Kejriwal Research and Investment Services said, “Gandhar Oil IPO listed on the Indian exchanges in style and the return given by the public issue is beyond expectations. However, after further appreciation in the scrip, a sharp correction is also expected as the stock has risen much higher than its valuation against its peers. So, I would advise the bulls to book profit at current levels and look at other quality stocks in the market.”
Disclaimer: The views and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.
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Updated: 30 Nov 2023, 12:49 IST
(tagsTo Translate)Multibagger stock