Multibagger IPO: Gandhar Oil share price lists at bumper premium. Should you book profit? | Mint
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Business News/ Markets / Stock Markets/  Multibagger IPO: Gandhar Oil share price lists at bumper premium. Should you book profit?
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Multibagger IPO: Gandhar Oil share price lists at bumper premium. Should you book profit?

Multibagger IPO: Gandhar Oil share price listed at ₹298 and went on to hit intraday high of ₹344.05 apiece on NSE, extending the listing gain of allottees to the tune of 103%

Multibagger IPO: Valuation gap of Gandhar Oil share price has narrowed down against its peers, say experts. (Photo: Courtesy NSE 'X' channel)Premium
Multibagger IPO: Valuation gap of Gandhar Oil share price has narrowed down against its peers, say experts. (Photo: Courtesy NSE 'X' channel)

Multibagger IPO: Shares of Gandhar Oil Refinery Ltd listed on Indian bourses at bumper premium during special pre-open session on Thursday. Gandhar Oil IPO listed on NSE at 298 per share levels, delivering to the tune of 76 per cent premium against upper price band of 169 apiece. However, shares of the white oil maker company extended its listing gains and went on to touch intraday hihg of 344.05 per share within few minutes of share listing, extending the listing gain of allottees to the tune of 103 per cent against upper price band of the public issue.

According to stock market experts, Gandhar Oil Refinery shares have got the advantage of post-listing euphoria in the over-crowded primary market. But, while delivering multibagger return to the allottees, valuation gap of Gandhar Oil share price against its peers has narrowed down and hence one should book profit and exit.

On what next after multibagger return from the public issue, Rajan Shinde, Research Analyst at Mehta Equities said, "Post listing, we believe the valuation gap has narrowed to GANDHAR peers and hence expecting limited upside from the current levels, hence we had recommended allotted investors to book listing day profits which is over and above our expectations."

Mehta Equities expert went on to add that Gandhar Oil IPO had a strong listing mainly on the back of reasonable IPO valuation when compared to its peers which were trading high. As the valuation gap has narrowed down after more than 100 per cent return, one should book profit as stock may not move further upside till there is some correction in the stock.

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Advising allottees to book profit and exit, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "Gandhar Oil IPO listed on the Indian exchanges in style and the return given by the public issue is beyond expectations. However, after further appreciation in the scrip, sharp correction is also expected as the stock has ascended much higher than its valuation against its peers. So, I would advised allottees to book profit at current levels and look at other quality stocks in the market."

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.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 30 Nov 2023, 12:46 PM IST
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