Two new listings

Two stocks have got listed on the bourses today, one at a discount and another at a premium. Talk about complete divergent views! Come to think of it, the listing is in direct tandem with the IPO response.

Construction company Karda Constructions got listed on the BSE & NSE at Rs.136 v/s the IPO price of Rs.180 – a discount of 24%. The issue was subscribed 2.44 times.

In Our New Issue Analysis we had said - Due to unattractive pricing and other negatives, the issue can be given a miss.

On the other hand, auto parts maker, Sandhar Technologies got listed on the BSE & NSE at Rs.345 v/s IPO price of Rs.332 – a premium of around 3%. The issue was subscribed 6.12 times.

Our verdict for the IPO was, “Sheer count of geographically-spread manufacturing units and diversified product categories, catering to varied segments of the auto industry, act as natural entry barriers. Leaner balance sheet post listing and strengthening margins make the fundamentals strong. Topped with our bullish view on the auto component space, we recommend ‘subscribe’ to the issue.”