Ami Organics shares opened today with an upside gap of ₹15 and went on to make its intraday high of ₹1120 apiece — around 80 per cent higher from its public issue price of ₹603 to ₹610 per equity share
Ami Organics share price today shot up near 17 per cent in the early morning trade session. The chemical stock, which got listed yesterday on Indian bourses at around 49 per cent premium, opened today with an upside gap of ₹15 and went on to make its intraday high of ₹1120 apiece — around 80 per cent higher from its public issue price of ₹603 to ₹610 per equity share. So, those lucky bidders, who still hold Ami Organics shares, their IPO investment has grown around 80 per cent in just 15 days as Ami Organics IPO had opened for subscription on 1st September 2021.
According to stock market experts, current valuations of the stock is not conducive for fresh buying but they advised Ami Organics shareholders to further hold the counter maintaining trailing stop loss at ₹945. They also advised lucky bidders to book 50 per cent profit as the public issue has given more than 50 per cent return on their money. They asked successful IPO bidders to book 50 per cent profit at current levels and re-enter at around ₹850 to ₹900 per equity share levels.
Speaking on Ami Organics share price target; Ravi Singhal, Vice Chairman at GCL Securities said, "Current valuation of the stock doesn't augur well for fresh buyers. They are advised to wait for profit-booking. However, those who hold Ami Organics shares are advised to upgrade their trailing stop loss from ₹811 to ₹945. Those bidders who got Ami Organics shares through allotment process are advised to book 50 per cent profit and re-enter at ₹850 to ₹900 levels maintaining stop loss at ₹811 apiece."
Expecting this bull run in the chemical counter to further continue; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Ami Organics may perform well in long run on the back of strong domestic and global opportunities whereas China +1 strategy may also provide robust growth to the specialty chemical companies in India. We would recommend the stock to hold from a long-term perspective." He said that investors can remain invested in Ami organics on the back of strong fundamentals and a positive outlook for the sector.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.