Abans Holdings makes disappointing debut; tanks 19% below its issue price

The stock fell to a low of Rs 218.65 on the BSE, down 19% when compared with its issue price of Rs 270 per share.

Abans Holdings made a disappointing debut on the bourses, with shares of the company sliding as much as 19 per cent below its issue price of Rs 270 per share to Rs 218.65 on the BSE on Friday. The stock of holding company listed at par on the BSE, while opened 1 per cent higher at Rs 273 on the National Stock Exchange (NSE) against its issue price.

At 10:26 AM; Abans Holdings traded at Rs 228.95, a 15 per cent discount to its issue price. In comparison, the S&P BSE Sensex was down 1 per cent at 60,168.

Abans Holdings is the financial services arm of the Abans Group and operates a diversified global financial services business providing NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stock broking, depositary services, asset management services, investment advisory services and wealth management services to corporates, institutional and high net worth clients.

The issue had received a tepid response from investors, both, institutional and retail.

“The company has an integrated financial services platform and strong human capital. It has global exposure, provides innovative financial products, and also has a strong relationship with clients. However, while the company's revenue has declined recently, it has also reported negative cash flow in the past,” Pravesh Gour, Senior Technical Analyst, Swastika Investmart said post listing of Aban Holdings.

Secondly, it is a holding company that is dependent on its 17 subsidiaries and operates in a highly competitive market. Those who applied for listing gains can keep a Rs 240 stop loss, the brokerage firm said.