Flair share price hits 10% lower circuit after dream debut. Buy, wait or exit?

Stock market today: Shares of Flair Writing Industries Ltd listed on Indian stock market bourses at whiooing listing premium during Friday deals. Flair share price today listed on NSE at ₹501 per share levels, delivering to the tune of 65 per cent listing premium to the allottees. However, Flair share price witnessed heavy profit booking and hit 10 per cent lower circuit within few minutes of share debut on Dalal Street. 

According to stock market experts, Flair share price hitting lower circuit within few minutes of listing doesn't augur well for the company. It will damage the reputation of stock among genuine retail and other investors. They advised allottees who still have position in the scrip to book profit and exit immediately when the stock opens for trade.

Flair share price outlook

Speaking on Flair share price debut at Indian stock market, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "Flair shares witnessed around 33 lakh trade volume during pre-listing session whereas its trade volume post-listing touched around 90 lakhs within few mintues of trade. This means, writing of the Flair shares at Dalal Street was manipulated, which led to sharp selling post-listing."

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The primary market expert went on to add that Flair share price touching lower circuit after stellar opening on Dalal Steet doesn't augur well for the company in long term. it is going to put doubt among genuine retail and other investors. Kejriwal advised allottees to exit the stock immediately once the stock starts trade on Indian bourses.

However, Rajan Shinde, Research Analyst at Mehta Equities thought otherwise. Rajan Shinde of Mehta Equities said that healthy listing of Flair IPO was justified on the back of high growth seen in the writing instruments and stationery segment, diversification into housewares, steel bottles and appliances and ongoing expansion plans to tap the future growth.

"We recommend conservative allotted short term investors to book profits while long term investors can HOLD considering healthy growth in the writing and creative instruments industry in India and strategic partnership with global brands," Rajan Shinde said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.