Sona Comstar had a much muted listing – as against the IPO price of Rs.291, it got listed on the BSE at Rs.302.40, nevertheless a premium of 4% as against expectations of a discounted listing.
The IPO was subscribed 2.28 times, wherein QIBs portion was subscribed 3.46 times, NIIs by 39% and Retail Investors by 1.57 times.
In our New Issue Analysis, we had concluded, “Our short term view on the sector remains cautious, as FY22 profitability may be impacted due to sharp rise in commodity prices. In this backdrop, aggressive issue pricing factors in all the positives, without leaving much for near term upside. Hence, we recommend skipping the IPO. “