Udayshivakumar Infra shares list at discount. Buy, hold or exit?

  • Udayshivakumar Infra share price opened on BSE at 35 whereas on NSE it listed at 30 apiece levels

Asit Manohar
Updated3 Apr 2023, 12:15 PM IST
Udayshivakumar Infra shares made a dull debut on Dalal Street despite moderate pricing and strong response by primary market investors, say experts.
Udayshivakumar Infra shares made a dull debut on Dalal Street despite moderate pricing and strong response by primary market investors, say experts.

Udayshivakumar Infra IPO listing: Despite strong listing expectations, Udayshivakumar Infra shares made a dull debut on Dalal Street. Udayshivakumar Infra share price today opened on NSE at 30 apiece whereas on BSE it listed at 35. However, the stock started to trade at around 33 apiece levels on BSE and NSE.

According to stock market experts, this poor listing of Udayshivakumar Infra shares can be attributed to tepid secondary market mood after the OPEC+ surprise production cut announcement. They said that those who have applied for listing gains can book loss and exit whereas those who applied for medium to long term can hold the stock.

Speaking on the reason for discounted listing of Udayshivakumar Infra shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After the announcement of surprise production cut by OPEC+ countries, stock market mood changed overnight and that got reflected in poor listing of the public issue. However, the public issue received strong response from the investors despite company's financials indicate inconsistent growth. But, company has a significant order book and hence allottees who have medium to long term view can hold the stock."

echoing with Avinash Gorakshkar's views, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, "Udayshivakumar Infra is engaged in the construction of roads, bridges, and flyovers in the state of Karnataka. The company introduced its Rs. 66 crore IPO on March 20. The IPO received a great response from the market, and on the last day it closed with 32,499 subscriptions. Even in the grey market, shares were trading at a premium of Rs. 11. So, everyone was expecting a huge listing for this IPO, but unfortunately, we witnessed a poor listing at Rs. 30 against the IPO price of Rs. 35, and now it is trading 10% lower."

The Swastika Investmart expert went on to add that those lucky allottees, who applied for listing gains can exit at current levels, while high-risk investors can hold it for the long term.

Udayshivakumar Infra Ltd's initial public offering (IPO) was subscribed 32.49 times by the third day of subscription, helped by huge interest from institutional investors, on Wednesday, March 23, 2023 that opened on Monday, March 20, 2023. The issue was priced in a range of 33-35 a share. The offer received bids for over 61.26 crore shares against 2 crore shares on offer, as per the exchange data.

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 decisions.

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First Published:3 Apr 2023, 12:15 PM IST
Business NewsMarketsStock MarketsUdayshivakumar Infra shares list at discount. Buy, hold or exit?

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