In line to the expectations, shares of Keystone Realtors made a lacklustre debut on Dalal Street and made a tepid listing at the bourses on Friday.
The scrip was listed at a mild premium of 3% on both exchanges – National Stock Exchange (NSE) and BSE – at Rs 555 apiece, against an issue price of Rs 541 per equity shares.
Post listing, the Rustomjee Group company failed to woo investors and traded in a range. During its debut session, the scrip extended its gains marginally to hit Rs 568.25 on BSE, pushing the overall gains to just 5% over the issue price.
Analysts tracking the issue are bullish on the stock in the longer run and suggest holding it for future upside. A few suggested fresh buying at the current levels, thanks to its strong brand recall and decent financials.
Arafat Saiyed, Senior Research Analyst, Securities remains positive on the stock in the longer run and suggested investors to stay investors. “One can accumulate lower levels and fresh entry can be made in the stock.”
Pravesh Gour, Senior Technical Analyst, said that it had a respectable debut after unexciting investor’s interest. It has reported a mixed set of financials, where revenue is almost stable.
“Allottees are advised to maintain their stop loss at Rs 545 and wait for further upside, whereas those who have a medium- to long-term perspective can hold the stock and maintain their stop loss at Rs 510,” he added.
The company’s Rs 635 crore IPO was sold in the range of Rs 514-541 per share, and received a tepid investor response, subscribing only just more than twice between November 14-16.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 3.84 times while the one reserved for non-institutional investors (NIIs) and retailers was subscribed 3.03 times and merely 53%, respectively.
Ravi Singh, Vice President and Head of Research, Share India said that investors, who are in need of funds, may book their positions at current levels.
“However, Keystone Realtors is a good bet from a long term perspective as per the financial performance and projects in hand so those who want to hold their positions may continue for better returns,” he added.
Keystone Realtors is a Rustomjee Group company and is one of the prominent real estate developers. It is engaged primarily in the business of real estate construction, development and other related activities.
Manoj Dalmia, Founder and Director, Proficient Equities suggested investors to consider this investment with a medium to long-term perspective considering its in-line valuations compared to peers.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)