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Bumper Listing! These 10 stocks recorded listing gains of 50-100%

Anecdotal evidence suggests that there are as many as 10 companies which recorded listing gains of over 50-140 percent since 2011.

August 06, 2018 / 13:26 IST
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    With a listing gains of about 58 percent on the NSE on Monday, HDFC AMC had a stellar debut on the bourses. The stock witnessed second-highest listing gains in 2018 and sixth-highest since 2011, data showed.

    HDFC AMC stock listed at Rs 1,738 on the NSE, up 58 percent as compared to the issue price of Rs 1,100 per share. It crossed Rs 1,800 levels on the exchange in intraday trade.

    Anecdotal evidence suggests that since 2011, there are as many as 10 companies which recorded listing gains of over 50-140 percent. Out of these 10 stocks, 3 more than doubled investors’ wealth.

    Salasar Techno Engineering, which is a leading provider of Steel Solutions in India with global operations spread throughout Asia and Africa, saw listing gains of 139 percent, followed by Astron Paper, which saw listing gains of 128 percent, and D-Mart (Avenue Supermarts), which is a chain of hypermarket and supermarkets in India founded by Radhakishan Damani in the year 2002, rose 102 percent in the same period.

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    Other companies which have given over 50 percent listing gains include companies like Apollo Micro, Sharda Cropchem, Capacite Infraprojects, Snowman Logistics, Quess Corp, Athena Constructions, and Dixon Technologies (India).

    What should investors do?

    HDFC AMC public issue was subscribed 83.06 times receiving bids for 156.19 crore equity shares against IPO size of 1.88 crore shares (excluding anchor portion).

    Experts said HDFC AMC's premium valuations to peers are justified on account of higher profit CAGR, strong pedigree, HDFC's brand, distribution, long-term performance, relatively stable management profile, high dividend payout and high capital return ratios.

    Analysts advise investors to hold on to HDFC AMC stock as it is a long-term wealth creator despite bumper listing.

    "I would suggest holding on to the stock on listing even if it were to list at a huge premium. HDFC AMC being a market leader in the Indian Mutual fund industry is expected to be one of the best beneficiaries of the increasing financialisation of household savings in India," Siddharth Khemka, Head- Retail research, Motilal Oswal Securities told Moneycontrol.

    "The company has a very strong brand and parentage, along with a higher share of equity AUM giving it industry-leading growth, profitability and return ratios," he said.

    Kshitij Anand
    Kshitij Anand is the Editor Markets at Moneycontrol.
    first published: Aug 6, 2018 12:57 pm

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