A new listing on the bourses today – Prataap Snacks and looks like it had a listing crunch!
The stock got listed at Rs.1250 on the BSE v/s IPO price of Rs.938, a premium of 33%.
The issue had got a very good response, subscribing 47.39 times, despite the steep pricing, mainly supported by qualified institutional buyers (QIBs) and HNIs – their portion was subscribed 76.89 times and 101.15 times; that explains the huge premium listing. Retail was at 8.48 times.
The trick is to see whether and how long it retains this listing momentum.
In our New Issue Analysis, we had said, “While company’s topline growth is credible, not much can be said for its margins. For investors, it will be prudent to wait for actual quarterly numbers to unfold before justifying such premium multiples. On inconsistent and wafer-thin margins coupled with aggressive issue pricing, the IPO can be given a miss.”