Shares of Premier Energies staged a solid debut on Tuesday as the stock delivered multibagger returns on its listing day. The scrip was listed at Rs 991 on BSE, a premium of 120.22 per cent over its issue price of Rs 450 per share. As the session, it cooled off from its listing price and was last seen trading 14.95 per cent lower at Rs 842.80. What needs to be mentioned here is that the stock is still up 87.29 per cent from its issue price of Rs 450.
A few analysts suggested that market participants can consider booking some profit, given the counter's bumper listing day gains. Investors with a high-risk appetite and long-term view can hold on to the stock, an analyst said.
"The stock looks fully priced-in but the management guidance is quite strong. Those who invested for listing gains can consider booking some profit. When the stock gives phenomenal listing gains, it is always better to take some profit off the table," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
With that being said, investors with a high-risk appetite and long-term view can hold on to it, the market expert added.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also advised investors to book profit on the counter post its stellar listing.
The initial public offering of Premier Energies was open between August 27 and August 29. The company offered its shares in the fixed price band of Rs 427-450 per share with a lot size of 33 shares. It raised about Rs 2,830.40 crore via its primary offering, which included a fresh share sale of Rs 1,291.40 crore and an offer for sale of 3.42 crore shares.
The Rs 2,830-crore IPO received bids worth more than Rs 1.48 lakh crore. With this, it became the second company after Tata Technologies Ltd to cross Rs 1 lakh crore bidding value during the initial share sale phase. The robust demand was led by institutional investors who made bids worth Rs 1.1 lakh crore.
As per BSE, investors placed bids for 3,30,91,03,446 equity shares, or 74.13 times, compared to the 4,46,40,825 equity shares offered. The allocation for qualified institutional bidders (QIBs) was subscribed 216.67 times on the final day, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 49.79 times. The employee portion was booked 10.79 times and the category kept for retail investors was booked 7.30 times.
Incorporated in April 1995, Premier Energies manufactures integrated solar cells and solar panels. Its product portfolio includes cell, solar modules, bifacial modules, EPC solutions and O&M solutions. It has five manufacturing units, all of which are situated in Hyderabad, Telangana.