When the Nifty 50 scaled a record high, shares of the newly listed companies began crawling down as investors rushed to take some money off the table on December 1.
Shares of Tata Technologies, Gandhar Oil Refinery India, and Indian Renewable Development Energy Agency (IRDEA) traded down 2-7 percent intraday on the National Stock Exchange on December 1 when the benchmark Nifty shot up to an all-time high of 20,285 points. Investors dumped these shares after they got listed at a huge premium on the bourses.
Tata Technologies made its debut on the exchanges on November 30, listing at a 140 percent premium to the IPO price. The stock was trading at Rs 1,200 on the NSE and at Rs 1,199.95 on the BSE on December 1, while its issue price was Rs 500.
Also read | Tata Tech doubles investors' wealth, lists at 140% premium over IPO price
Tata Technologies recorded the third-best listing-day closing gains among the IPO debuts in the history of the Indian capital market. Given the growth potential in outsourcing, analysts expect its business model to remain in great demand. The analysts recommended investors to hold the stock for the long term, and for those who failed to get allotment to accumulate on dips.
For Gandhar Oil Refinery India, the listing recorded a 75 percent premium over the issue price. The stock started trading at Rs 295 on the BSE and Rs 298 on the NSE, against the issue price of Rs 169 per share. IERDA listed at a higher-than-expected price of Rs 50 on the NSE - up 56 percent from the issue price of Rs 32.
Also read | Nifty hits a new high, soars above 20,250 on GDP boost, FII buying
The Nifty 50 hit a fresh record high on December 1, led by broad-based buying amid mixed global cues. It gained over 125 points to touch a new high of 20,258.45 in the early trading session of the day.
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