Performance on the day of listing
ISAF Bank shares were listed on the stock exchange for the first time at Rs 71, much to the hopes of investors. The stock’s listing gain is 18.33 per cent based on the issue price (Rs 60) for retail investors. The stock hit an intraday high of Rs 74.80 (on NSE) shortly after the listing at 10 am.
But ISAF stock retreated to Rs 70 level as it faced severe selling pressure at higher levels. The ISAF stock then fell to Rs 68.55, hitting its lowest level of the day. Later, the stock maintained the level of Rs 70 in the trade till two o’clock. Shares of ISAF closed at Rs 69.05 in late trading on Friday. There is a 15 percent gain in the stock from the issue price.
Gray market premium
As part of the ISAF Bank IPO, the share issue to anchor investors on November 2 had a gray market premium of Rs 22. Then when the general issue of shares started, the share price in the unofficial market (grey market premium) fell to Rs.20. However, on November 7, the gray market premium for ISAF shares rose to 21 as the IPO was oversubscribed by 73 times.
After the allotment of shares to the investors who participated in the IPO, the gray market premium of ISAF Bank shares fell to Rs 16. A premium of Rs 16 was shown even before the listing today. Looking at it like that, ISAF shares should have been listed at least at Rs 76. Then the listing gain would have increased to 27 percent. But on the NSE, ISAF was listed at Rs 71.
What’s next in the stock?
Shivani Nyeti, Head of Wealth Department at Swastika Investmart, a leading brokerage firm, said that those who have been allotted ISAP Bank shares in the IPO can hold it for a short-term/long-term period and avoid (stop loss) if the share price falls below Rs 60. Meanwhile, the ISAF stock’s gains on listing are reasonable and there is no chance of a big jump soon after the listing, so profit taking is advisable, said Prashant Tapse, market analyst at leading brokerage Mehta Equities.
(Notice: The above opinions regarding the stock are given by the brokerage firms on their own basis. Times Internet is not responsible for these opinions. Before taking any investment decision, you can seek the services of SEBI approved financial experts.)