JNK India share price jumps over 14% after listing at 50% premium. Should you buy, sell or hold?
JNK India's stock debuted impressively on the market, opening at ₹621 per share on the NSE, a 49.63% increase from its issue price. The stock reached a peak of ₹709.80 per share. Market experts recommend holding onto the stock for the long term, citing the company's robust fundamentals.
JNK India's stock had an impressive debut on the market today. Opening at ₹621 per share on the NSE, it marked a significant 49.63% increase from its issue price of ₹415. Similarly, on the BSE, the stock began trading at ₹620 per share. The bullish trend continued post listing, with the stock reaching a peak of ₹709.80 per share, a notable 14.30% surge from its listing price.
Retail investors who were allotted shares witnessed their investments grow by nearly 50% in a day. Market experts recommend holding onto the stock long-term, citing the company's robust fundamentals.
Shivani Nyati, Head of Wealth, Swastika Investmart, said, "JNK India Limited, the manufacturer of process heating equipment, defied even optimistic pre-listing forecasts with a spectacular debut on the stock exchanges. The company's share price soared around 50% above its issue price of Rs. 415, listed at Rs. 621 per share. This impressive listing significantly surpassed the anticipated 30% premium predicted by the grey market, underscoring the overwhelming investor confidence in JNK India's future potential."
"While the initial surge might be followed by some volatility, the strong fundamentals and positive outlook suggest long-term potential. Existing investors may hold their shares with a stop loss of ₹560 and monitor the performance closely," Shivani added.
Mr Tarun Singh, MD, Highbrow Securities, said, "Companies focused on creating and nurturing their value are bound to achieve premium listings due to their strategic presentation at appealing valuations to unsuspecting investors, providing plenty for them to anticipate and trust in."
"I believe the IPO of JNK India stood out because it not only had the financials to demonstrate its value but also made the strategic decision to set its valuation lower than the benchmarks of its listed competitors. This approach led to a superior valuation that was more appealing for investors to endorse."
“Clearly, this is a winning formula that I've consistently advocated for IPO-bound companies. IPOs represent an ideal opportunity not just for capital raising by leveraging past achievements but, more importantly, for laying the foundation for future value creation,” Tarun Singh stated.
About JNK India
The company specialises in manufacturing "heating equipment," encompassing a range of products such as process-fueled heaters, cracking furnaces, and reformers. These play a crucial role in various process industries, including refineries for oil and gas, fertilisers, and petrochemicals. Their offerings extend to comprehensive services covering design, engineering, manufacturing, supply, installation, and commissioning of heating equipment, catering to both domestic and international markets.
Notable among its domestic clients are Indian Oil Corporation Limited, Tata Projects Limited, Rashtriya Chemicals & Fertilisers Limited, and Numaligarh Refinery Limited.
The IPO garnered a robust response from investors across the board, with an overall subscription status of 28.13 times. The retail segment witnessed 23.26 times, while non-institutional investors showed a subscription of 4.11 times. The quota for qualified institutional buyers (QIBs) was subscribed by an impressive 75.72 times.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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