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Business News/ Markets / Ipo/  Contrasting fortunes for new listings
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Contrasting fortunes for new listings

Motisons Jewellers, a diamond and gold jewellery retailer, listed at ₹109 on the NSE

Suraj Estate Developers Ltd, a real estate developer, also faced investor skepticism on its debut. (Photo: Mint)Premium
Suraj Estate Developers Ltd, a real estate developer, also faced investor skepticism on its debut. (Photo: Mint)

MUMBAI : The investor reception to three issues that listed on Tuesday was mixed; while Motisons Jewellers Ltd made a stellar debut, Suraj Estates Ltd and Muthoot Microfin elicited a tepid response.

Motisons Jewellers, a diamond and gold jewellery retailer, listed at 109 on the National Stock Exchange (NSE)—a staggering 98.18% premium to its issue price of 55.

It continued to climb, reaching an intraday high of 109.8, before settling at 103.55 on the NSE. The overwhelming demand for Motisons Jewellers shares showed up in an oversubscription of 159.6 times.

The retail portion was bid 122 times.

In contrast, Muthoot Microfin, a microfinance lender, stumbled on its debut day.

Its shares listed at 275.30 on the NSE—a disappointing 5.39% discount to the issue price of 291.

It briefly touched an intraday high of 281 before settling at 266.15, down 8.45% on the NSE. This muted response came as a surprise considering the company’s robust subscription of 11.5 times. However, the retail portion was bid 7.6 times

Analysts attribute this disparity to year-end profit booking, with investors looking to secure gains before entering the new year.

“There appears to be a trend of profit booking among many IPOs, with investors opting to secure their gains as we enter the new year. The focus seems to be more on profit realization rather than fresh buying in these IPOs," said Kranthi Bathini, director of Equity Strategy at WealthMills Securities Pvt. Ltd.

Suraj Estate Developers Ltd, a real estate developer, also faced investor skepticism on its debut.

Its shares listed at 340 on the NSE, marking a 5.55% decline compared to the issue price of 360. It reached an intraday high of 354.45 before settling at 334.50, a discount of 7% to the issue price.

While the issue was subscribed 15.6 times, investors copped out at listing.

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ABOUT THE AUTHOR
Mayur Bhalerao
"Mayur spearheads data-driven reporting on IPOs for Mint. He also covers market trends, and corporate announcements to ensure comprehensive coverage of the financial landscape. Mayur believes in harnessing the power of Bloomberg Terminal and Capital Line to extract and disseminate critical financial data to cross-functional teams within the newsroom and beyond. disseminate critical financial data to cross-functional teams within the newsroom and beyond."
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Published: 27 Dec 2023, 12:35 AM IST
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