The shares of HP Adhesives made a strong stock market debut on Monday, the stock opened for trading at Rs 319 on the BSE compared to its issue price of Rs 274 per share, marking an upside of 16 per cent.
On the National Stock Exchange, HP Adhesives shares opened for trading at Rs 315, marking a premium of 15 per cent. The stock surged as much as 22 per cent to hit an intraday high of Rs 334.95 on the BSE.
A day ahead of its debut on the bourses, the scrip was exchanging hands at a premium of Rs 90-100 per share in the grey market, signaling towards a decent listing pop, a report in The Economic Times said.
HP Adhesives’s IPO was open for subscription between December 15-17. The company raised Rs 125.96 crore by selling its shares in the range of Rs 262-274 apiece.
However, despote making an impressive debut on the stock market, many induystry experts seem to have a mixed view on the company's share. Many of them have recommneded to not go for fresh buying.
Here are some views that investors must take into consideration:
Vikas Jain, Senior Research Analysts, Reliance Securities
The analyst was quoted by The Economic Times, as saying, “We are not very positive about the company and investors should exit.” For fresh investments, Jain advised investors to avoid the counter.
Ajit Mishra, VP- Research, Religare Broking
Mishra said HP Adhesives has debuted at a decent premium and long-term investors should continue to hold it, according to a report published in The Economic Times. However, Mishra had not recommended any fresh buying at current levels. "Market sentiments are not supported due to the new variant and one should not enter the counter in a hurry," he added.
Likhita Chepa, Senior Research Analyst at CapitalVia Global Research
Chepa said the issue witnessed a strong investor response and was oversubscribed majorly due to the size of the issue despite higher valuations, a report in The Economic Times said.
“Weaker global market sentiments have impacted the listing gains to some extent. We advise investors to book profits at current levels as we expect some correction in its prices in the coming weeks,” Chepa was quoted by The Economic Times as saying.
