JSW Cement shares fell below the IPO price on Thursday shortly after listing with gains of over 4 percent, as investors booked profits.
On the NSE, the stock declined nearly 6 percent to an intraday low of Rs 145.05 after opening at Rs 153.50, a premium of 4.42 percent over the issue price of Rs 147.
On the BSE, it debuted at Rs 153, up 4 percent, and later rose 5.23 percent to Rs 154.70. The company's market capitalisation stood at Rs 20,914.02 crore.
The initial public offer of the JSW Group company was subscribed 7.77 times in the price band of Rs 139-147 per share.
JSW Cement shares list at over 4% premium over IPO price on NSE - Should you buy, sell or hold?
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., noted the company's revenue growth and profit after tax have shown inconsistency over the past three years. "Being in a growth phase, the company’s high valuation and current losses could lead to short-term volatility in returns. Investors who entered the public offering for listing gains are advised to maintain a stop loss at Rs 138 and wait for potential upside, while those with a medium- to long-term perspective may consider holding the stock for future growth," she added.
JSW Cement operates seven plants in southern, eastern and western India. The company plans to use the IPO proceeds for setting up a factory in Rajasthan.
Ventura Securities said in a note that capacity expansion will widen the company's market reach and improve profitability, while its association with the JSW Group provides brand strength and access to raw materials and power, reported Reuters.
The JSW Group holds about 70 percent stake in JSW Cement.
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