Arvind Fashions shares end at Rs 620 after hitting 5% upper limit

Arvind Fashion is the branded apparel division of Arvind Ltd. The company was demerged in Nov 29, 2018, after Arvind shareholders were issued one share of Arvind Fashions for every five shares held

Arvind Fashions listed on the bourses on Friday, where its shares ended at Rs 620, after hitting the 5 per cent upper limit. However, some investors alleged that the stock listed much below its fair value due to a flaw in the price discovery process. 

Ahead of any new listings, stock exchanges conduct so-called ‘pre-open using call auction,’ a 45-minute price discovery process that allows investors to place bids before the actual trading starts. The price at which maximum bids are placed becomes the opening price. The open price is then subjected to trading limits of 5 per cent or 20