Shares of Elin Electronics extended selling pressure post a tepid listing, before ending the day at Rs 227.80 on BSE, down 7.77 per cent over the issue price of Rs 247.
Elin Electronics hit a low of Rs 225.60 05 and high of Rs 244.75 during the day.
Analysts said that the poor listing of recent debutants and weak market sentiment dented stock. They see more pain in the coming sessions and suggested short-term investors to exit the stock, they add.
“Elin Electronics may see some more selling from current levels and may touch the levels of Rs 210 in the near term, ” said Ravi Singh, Vice President & Head of Research at Share India.
Investors may exit holdings and wait for the sentiment to improve, he said.
Elin Electronics was the seventh company to make its debut in December and the last company to get listed on the bourses in 2022.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart said that the issue was attractively priced when compared to its peers, but is operating in a highly competitive market, and the majority of its revenue is derived from a limited number of customers.
“As a result, allottees who applied for the public offering for listing premium should keep their stop loss at Rs 235,” he added.
Elin Electronics raised Rs 475 crore through its primary stake sale between December 20 to December 22. The issue, which was subscribed a bit more than thrice, was sold in the price band of Rs 234-247 apiece.
The portion for qualified institutional bidders was booked about 4.5 times, whereas quota for non-institutional investors was subscribed 3.3 times. The allocation for retail investors fetched 2.2 times bids.
The Kolkata headquartered Elin Electronics is a leading electronics manufacturing services provider, which provides end-to-end product solutions for major brands of lighting, fans, and kitchen appliances in India.
The company, which was incorporated in 1969, has three manufacturing facilities which are strategically located in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh) and Verna (Goa).
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