Tara Jewels makes dull debut on bourses

If Tara shares' slide continues, PC Jewellers IPO could be impacted

Tara Jewels, the first company to list since July, made a tepid debut on the stock exchanges on Thursday, with the stock ending at marginal discount to its issue price after opening at a premium. Brokers said investors booked profits on the listing day as they were not sure whether the premium would sustain in the coming days.

Shares of Tara Jewels, which raised almost Rs 180 crore through the initial public offerings (IPOs), closed at Rs 229.95 versus the issue price of Rs 230. However, when compared to the so-called ‘equilibrium price' of Rs 242, which is derived through a one hour pre-open call auction window, the shares fell a maximum permissible limit of 5%.

Analysts said Tara’s dull listing does not send the right signals to retail investors, who are preparing to invest in the upcoming three IPOs including Bharti Infratel and Care and PC Jewellers, which will raise a total of Rs 5,500 crore. But, they do not expect investor interest in these IPOs to be affected just because of Tara’s lackluster debut.

“This will make retail investors cautious when it comes to investing in IPOs,” said  Arun Kejriwal, director, Kejriwal Research and Investment Services. “Investors will watch the performance of this stock over the next few days before the put in an application for the forthcoming IPOs.”

Kejriwal said if Tara shares weaken further, it would be significantly negative for the upcoming PC Jeweller IPO.

Market players said that there could be downward pressure on the stock in coming days as the shares were thinly traded today as the shares got locked in lower circuit. The combined trading volume today was 910,000 shares compared to issue size of 6.8 million shares.

Independent analyst SP Tulsian said one should not read much into a single-day movement and the real value of the stock will start reflecting once the stock moves out of trade-to-trade segment.

“IPOs tend to come under selling pressure on initial days as impulsive investors look to exit the stock with some listing gains. Value investors start buying into such stocks once they come to free floor,” he said.

image
Business Standard
177 22
Business Standard

Tara Jewels makes dull debut on bourses

If Tara shares' slide continues, PC Jewellers IPO could be impacted

Samie Modak  |  Mumbai 



Tara Jewels, the first company to list since July, made a tepid debut on the stock exchanges on Thursday, with the stock ending at marginal discount to its issue price after opening at a premium. Brokers said investors booked profits on the listing day as they were not sure whether the premium would sustain in the coming days.

Shares of Tara Jewels, which raised almost Rs 180 crore through the initial public offerings (IPOs), closed at Rs 229.95 versus the issue price of Rs 230. However, when compared to the so-called ‘equilibrium price' of Rs 242, which is derived through a one hour pre-open call auction window, the shares fell a maximum permissible limit of 5%.

Analysts said Tara’s dull listing does not send the right signals to retail investors, who are preparing to invest in the upcoming three IPOs including Bharti Infratel and Care and PC Jewellers, which will raise a total of Rs 5,500 crore. But, they do not expect investor interest in these IPOs to be affected just because of Tara’s lackluster debut.

“This will make retail investors cautious when it comes to investing in IPOs,” said  Arun Kejriwal, director, Kejriwal Research and Investment Services. “Investors will watch the performance of this stock over the next few days before the put in an application for the forthcoming IPOs.”

Kejriwal said if Tara shares weaken further, it would be significantly negative for the upcoming PC Jeweller IPO.

Market players said that there could be downward pressure on the stock in coming days as the shares were thinly traded today as the shares got locked in lower circuit. The combined trading volume today was 910,000 shares compared to issue size of 6.8 million shares.

Independent analyst SP Tulsian said one should not read much into a single-day movement and the real value of the stock will start reflecting once the stock moves out of trade-to-trade segment.

“IPOs tend to come under selling pressure on initial days as impulsive investors look to exit the stock with some listing gains. Value investors start buying into such stocks once they come to free floor,” he said.

RECOMMENDED FOR YOU

Tara Jewels makes dull debut on bourses

If Tara shares' slide continues, PC Jewellers IPO could be impacted

Jewellery retailer Tara Jewels, the first company to list since July, made a tepid debut on the stock exchanges on Thursday, with the stock ending at marginal discount to its issue price after opening at a premium. Brokers said investors booked profits on the listing day as they were not sure whether the premium would sustain in the coming days.

Tara Jewels, the first company to list since July, made a tepid debut on the stock exchanges on Thursday, with the stock ending at marginal discount to its issue price after opening at a premium. Brokers said investors booked profits on the listing day as they were not sure whether the premium would sustain in the coming days.

Shares of Tara Jewels, which raised almost Rs 180 crore through the initial public offerings (IPOs), closed at Rs 229.95 versus the issue price of Rs 230. However, when compared to the so-called ‘equilibrium price' of Rs 242, which is derived through a one hour pre-open call auction window, the shares fell a maximum permissible limit of 5%.

Analysts said Tara’s dull listing does not send the right signals to retail investors, who are preparing to invest in the upcoming three IPOs including Bharti Infratel and Care and PC Jewellers, which will raise a total of Rs 5,500 crore. But, they do not expect investor interest in these IPOs to be affected just because of Tara’s lackluster debut.

“This will make retail investors cautious when it comes to investing in IPOs,” said  Arun Kejriwal, director, Kejriwal Research and Investment Services. “Investors will watch the performance of this stock over the next few days before the put in an application for the forthcoming IPOs.”

Kejriwal said if Tara shares weaken further, it would be significantly negative for the upcoming PC Jeweller IPO.

Market players said that there could be downward pressure on the stock in coming days as the shares were thinly traded today as the shares got locked in lower circuit. The combined trading volume today was 910,000 shares compared to issue size of 6.8 million shares.

Independent analyst SP Tulsian said one should not read much into a single-day movement and the real value of the stock will start reflecting once the stock moves out of trade-to-trade segment.

“IPOs tend to come under selling pressure on initial days as impulsive investors look to exit the stock with some listing gains. Value investors start buying into such stocks once they come to free floor,” he said.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

  • Foreign flows surpass last year's tally Foreign flows surpass last year's tally
  • Valuations not as cheap as they were in early 2016: Sankaran Naren Valuations not as cheap as they were in early 2016: Sankaran Naren

STOCK WATCH

Company Price() Chg(%)
Trident 56.00 12.45
VST Inds. 2296.20 10.12
GRUH Finance 345.20 9.33
J B Chem & Pharm 336.60 7.90
Century Textiles 709.85 5.92
> More on BSE Gainers
Company Price() Chg(%)
Trident 56.45 13.13
Future Lifestyle 137.65 10.92
GRUH Finance 346.05 9.46
VST Inds. 2284.90 9.22
J B Chem & Pharm 336.50 7.71
> More on NSE Gainers
Company Price() Chg(%)
Welspun India 49.70 -8.64
Shilpa Medicare 553.00 -7.82
Piramal Enterp. 1851.10 -5.41
Jaypee Infratec. 9.21 -4.76
Avanti Feeds 534.10 -4.20
> More on BSE Gainers
Company Price() Chg(%)
Welspun India 49.40 -8.60
Shilpa Medicare 551.70 -7.87
IDBI Bank 70.45 -6.38
Jaypee Infratec. 9.10 -5.70
Piramal Enterp. 1847.10 -5.48
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard