Ratnaveer Precision Engineering Limited and Rishabh Instruments Limited both celebrated their stock market debuts on Monday, yet their performances displayed notable differences.
Ratnaveer Precision's shares initiated trading at a remarkable 31 percent premium over its IPO issue price of Rs 98, a promising start indeed. As trading commenced, the company's shares were valued at Rs 129 on the Bombay Stock Exchange and Rs 123.20 on the National Stock Exchange. This strong listing performance continued around 11 a.m., with the shares maintaining a nearly 32 percent premium over the issue price.
Market analysts have attributed this robust debut to the substantial subscription numbers and the overall favorable conditions in the broader markets. It's worth noting that the IPO garnered an exceptional response, with investors bidding for 110.79 crore equity shares, representing a subscription rate of 93.99 times the initial offer size of 1.17 crore shares.
Anubhuti Mishra, an Equity Research Analyst at Swastika Investment Ltd, remarked, "Ratnaveer Precision Engineering Limited (RPEL) made its stock market debut today, listing on the exchange at Rs 129 per share, a 31 percent premium to its initial public offering (IPO) price of Rs 98."
Conversely, Rishabh Instruments' shares commenced trading at Rs 460, marking just a 4 percent premium over the IPO issue price of Rs 441, which disappointed some investors. Following the initial listing, the shares experienced a slight dip and were trading at approximately Rs 449 on both the NSE and BSE by around 11 a.m.
Anubhuti Mishra from Swastika Investment stated, “The market witnessed two IPO listings today. Ratnaveer Precision gave a decent return to its investors, while Rishabh Instruments registered a positive yet not so impressive listing with a gain of just around 4 percent at Rs 460 per share.”
While recognizing various strengths of Rishabh Instruments as a company, Mishra also acknowledged certain risks associated with its international exposure and potential shortages of production inputs like semiconductors. Furthermore, she noted that the IPO valuation was somewhat on the high side.
Mishra recommended exiting the position following this listing. However, for high-risk investors inclined to retain their holdings, she advised implementing a stop-loss at the issue price as a precautionary measure.
