Radian Cash Management Services had a strong stock market debut on Wednesday, as the scrip settled 11 per cent higher on Day 1 of the listing.
Against the issue price of Rs 94 apiece, the stock got listed at Rs 103 on NSE, up 10 per cent. It debuted at Rs 99.30 on BSE, up 6 per cent.
However, the company extended its gains during its to hit a high of Rs 116.70 on BSE, which was 25 per cent above the issue price. It later saw some profit booking and the scrip paired some gains.
Investors can book partial profits at these levels, said analysts, who believe the remaining portion can be kept for long-term gains.
Astha Jain, Senior Research Analyst at Hem Securities said investors should book 50 per cent profit and can hold the remaining half for the longer run.
“The company is a leading player in retail cash management, which provides better margins,” he added. “It is fundamentally stronger when compared with peers.”
The strong listing to the IPO was seen even as Radiant Cash Management Services’ issue was not subscribed fully during the three-day bidding process. It, however, broke a series of muted listings at Dalal Street.
Arafat Saiyed, Assistant Vice President at Reliance Securities said investors should book half of the profits considering the mixed market sentiment. He, though sees, more upside potential in the stock.
The initial public offering (IPO) of the Radiant Cash Management was open for bidding between December 23-27 as the company sold its share in the range of Rs 94-99 apiece.
The issue was subscribed 53 per cent, below the minimum threshold of 90 per cent that is required to make an issue sail through. Only the portion reserved for qualified institutional bidders managed to sail through fully.
The company had to slash the total issue size to Rs 256.66 crore from Rs 387.94 crore earlier. Also, the company allotted the shares at the lower end of the price band.
The fresh issue component was reduced to Rs 54 crore from Rs 60 crore. Also, the size of offer-for-sale (OFS) was reduced to 33,125,000 shares to 21,222,431 shares which is Rs 202.09 crore from Rs 327.94 crore.
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