MV Electrosystems share price makes a bumper debut on Dalal Street at over 22% premium. Buy, sell or hold?

MV Electrosystems shares made a stellar debut on Dalal Street, opening on the BSE at ₹519 apiece. After this bumper opening on the BSE, the newly-listed stock delivered a whopping 22% listing gain to the lucky allottees, against the upper price band of ₹425 per equity share. After listing at a whopping premium, MV Electrosystems' share price extended its gains and touched an intraday high of ₹586 apiece on the BSE within a few minutes of listing.

The public issue was offered at a price band of ₹400 to ₹425 per equity share. The public issue received a strong response from investors as it was subscribed close to 100 times of its original offer. While offering company shares, the promoters had promised in the RHP that the company would utilise IPO proceeds for working capital requirements.

Buy, sell or hold?

Speaking on the bumper debut of MV Electrosystems shares on Dalal Street, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The issue was expected to list at a bumper premium as it had received a strong response from investors, and the buzz was expected to remain post-listing. The issue listed on the BSE at ₹519, and it has climbed to an intraday high of ₹586 per share, delivering a decent 38% listing gain to the lucky allottees.”

Unveiling the strategy post-listing, Arun Kejriwal said, “Those who have a short-term view are advised to book profit and exit. For those with a long-term view of the stock, they are also advised to book profits, as the scrip appears overbought at the current market price. The fair value of the stock is below ₹500.”

For short-term investors who want to maximise their returns, Shivani Nyati, Head of Wealth at Swastika Investmart, said, “Allotted investors can consider booking partial profits and hold the remaining position with a stop-loss of Rs. 470, while fresh investors should wait for consistent operational performance before entering.”

Kejriwal said long-term investors may re-enter when the stock falls to ₹500.

“Those who failed to get company shares during the finalisation of share allotment are advised to start accumulating MV Electrosystems shares from ₹500, while the lucky allottees who have a long-term view are advised to book profit at the current price and repeat the same mentioned above,” Arun Kejriwal said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.