Samhi Hotels stock was listed on the bourses at just a 6.75 percent premium over the IPO price of Rs 126 on September 22. The stock opened at Rs 134.50 on the NSE and Rs 130.55 on the BSE. Several analysts have recommended booking profits and advised investors to consider other avenues for investment.
Samhi Hotels IPO was subscribed 5.57 times, supported by qualified institutional buyers (QIB). However, the issue did not receive enough support from high net-worth individuals (HNIs) and retail investors, who subscribed 1.22 times and 1.11 times, respectively. The stock was trading at Rs 131.5 on the NSE and Rs 130.5 on the BSE at 11:00 AM.
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Stock Call: Should you buy, sell or hold Samhi Hotels stock?
Investors should book profit and exit their position: Swastika Investmart
Samhi Hotels is a loss-making company and its financial performance has been poor for the last three years but it is making progress on cutting losses, and the sales multiple is 3.7X, which is below the industry average. “Investors should book profit and exit their position, and those who still want to hold should maintain a stop loss at the listing price,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Sell shares on the opening day: StoxBox
The stock opened near the issue price due to the company-specific characteristics such as loss-making status, negative net worth and increased borrowings. This paints an overall bleak picture for the business compared to its listed peers such as Chalet Hotels and Indian Hotels, said Anushi Vakharia, Research Analyst, StoxBox. “We, therefore, remain cautious on the issue and recommend investors who have received allotment to sell their shares on the opening day and consider other avenues for investment,” she added.
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