Kaynes Technology ipo gmp: Kaynes Technology ready for strong debut at D-st? Here’s what the gray market signals
At the latest, the company was trading hands at a premium of Rs 200 per share in the unofficial market, which translated to 35% of the issue price of Rs 587 each.
Dealers tracking the gray market suggested that the company’s strong fundamentals, coupled with a decent response and a better-than-expected listing on Monday, support its outlook.
Abhay Doshi, co-founder of UnlistedArena, said despite expensive valuations, the company has a strong business model leading to strong take-up during the three-day bidding process.
“The company has a robust growth model, which can increase its turnover and results in the coming period,” he added. “Even government pressure on this sector is an added benefit for the company.”
Incorporated in 2008, Kaynes provides manufacturing and lifecycle support to players in the automotive, industrial, aerospace and defense, outer space, nuclear, from medical, railway, Internet of Things (IoT), IT and other segments.
Girish Sodani, equity market manager, said Keynes Technology looked like another promising company. He expected the company to list around Rs 820 per share, reporting a listing pop of 35-40%
“Investors should book part of the first-day listing gains and part within the week, given the price movement,” he added. “It can be bought later on dips for a long-term investment.”
The company’s Rs 858 crore IPO sold in the range of Rs 559-587 per share and received a strong response from investors, garnering over 34.16x underwriting between the 10th and 14th november.
The quota reserved for qualified institutional buyers (QIB) was subscribed 98.47 times while that reserved for non-institutional investors (NII) and traders was subscribed 21.21 times and 4.1 times respectively.
Ravi Singhal, CEO of GCL Securities, said Kaynes has a very strong business model. “One can put a target of Rs 1,000 on the counter, while the listing expects a range of Rs Rs 765-835 each.”
Manoj kumar Dalmia, founder and director of Proficient Equities, said it could give him a good rating gain. Investors can hold it for the medium to long term.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)