RR Kabel Shares Make Strong Debut Despite Market Correction
RR Kabel shares closed their first day of trading on September 20 with a gain of nearly 16 percent, despite a sharp correction in the equity markets. The BSE Sensex plunged nearly 800 points on the same day.
The stock opened higher by 14 percent at Rs 1,180, but immediately came off its day’s high and touched an intraday low of Rs 1,136.80 on the NSE in morning trade. However, it recouped those losses as the day progressed and hit a day’s high of Rs 1,212.70 in the last hour of trade. The stock eventually settled at Rs 1,198, up 15.75 percent over the issue price of Rs 1,035.
RR Kabel is the first company to list its shares on the exchanges within two days of the issue closing, using the new T+2 timeline introduced by the market regulator Sebi. The old timeline for listing of shares after the IPO was T+6, which will be completely stopped with effect from December 1, 2023.
The Gujarat-based company had launched its public issue during September 13-15 and raised Rs 1,964.01 crore via the offer. The price band for the offer was Rs 983-1,035 per share.
RR Kabel operates in two broad segments: wires & cables, which contributed 71 percent to its topline in the quarter ended June FY24, and FMEG (fast moving electrical goods), including fans, lights, switches and appliances.
The company’s strong debut on the bourses is a positive sign for the IPO market, which has been subdued in recent months. It also reflects the investor interest in the wires & cables and FMEG sectors, which are expected to benefit from the government’s focus on infrastructure development and electrification.
- 22 Sep
HDFC Bank stock expected to re-rate in next 12-18 months, says Motilal Oswal’s Nitin Aggarwal
Aggarwal is bullish on HDFC Bank's long-term prospects, but he believes that investors should wait and see how the bank executes in the near term.
- 22 Sep
Sai Silks’ IPO attracts lukewarm response, analysts raise concerns
Sai Silks Kalamandir's IPO received a lukewarm response with a subscription rate of just 0.07 times. Analysts have raised concerns about the company's high debt levels, intense competition in the industry, and the fact that half of the issue size is an OFS. The company also has 30 percent of its promoter holdings pledged. Despite these concerns, the company's management is confident about its growth prospects.
- 22 Sep
PSU bank shares make a comeback on JPMorgan’s index inclusion decision
PSU bank shares made a strong comeback on September 22, after JPMorgan's decision to include Indian government bonds in its emerging-market index boosted investor sentiment. However, analysts are urging caution with regard to the PSU bank space, citing the risks of investing in smaller PSU banks and the potential for divestment in some of the larger banks. Investors should carefully consider the risks and rewards before investing in PSU bank shares.
- 22 Sep
SEBI penalizes 11 entities for non-genuine trades in illiquid stock options segment
The Securities and Exchange Board of India (SEBI) has penalized 11 entities for non-genuine trades, fined 2 entities for flouting disclosure rules, and suspended the registration of 1 research firm for violating regulatory norms. SEBI's actions are a reminder to market participants that they must comply with all regulatory requirements. Investors should be aware of these risks and take necessary precautions to protect themselves.
- 22 Sep
Zaggle Prepaid Ocean Services Stock Makes Weak Debut, Analysts Recommend Selling
Zaggle Prepaid Ocean Services stock made a muted debut on bourses on September 22, listing at a premium of just 0.6% over the IPO price. Analysts have recommended selling the stock on the opening day, citing its high P/E valuation, debt-to-equity ratio, and negative cash flow.