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Tara Jewels makes dull debut on bourses

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:42 hrs

pJewellery retailer Tara Jewels the first company to list since July made a tepid debut on the stock exchanges on Thursday with the stock ending at a marginal discount to its issue price after opening at a premium Brokers said investors booked profits on the listing day as they were not sure whether the premium would sustain in the coming daysppThe shares of Tara Jewels which raised almost Rs 180 crore through the initial public offering IPO closed at Rs 22995 against the issue price of Rs 230 However compared to the so-called &lsquoequilibrium price&rsquo of Rs 242 which is derived through a one-hour pre-open call auction window the shares fell a maximum permissible limit of five per centppAnalysts conceded that Tara&rsquos dull listing might have sent the wrong signals to retail investors planning to invest in the coming IPOs of Bharti Infratel CARE Ratings and PC Jeweller which together plan to raise about Rs 5500 crore However they do not expect investors&rsquo interest in these IPOs to be greatly affectedpp&ldquoThis will make retail investors cautious when it comes to investing in IPOs&rdquo said Arun Kejriwal director Kejriwal Research and Investment Services &ldquoInvestors will watch the performance of this stock over the next few days before applying for the forthcoming IPOs&rdquoppKejriwal said if Tara&rsquos shares weaken further it would be significantly negative for the upcoming IPO of PC JewellerppAccording to market players there could be downward pressure on the stock in the coming days because the shares were thinly traded on Thursday as they got locked in the lower circuit The combined trading volume on Thursday was 910000 shares compared an issue size of 68 million sharesppIndependent analyst S P Tulsian said one should not read too much into a single-day movement and the real value of the stock will start reflecting once the stock moves out of trade-to-trade segmentpp&ldquoIPOs tend to come under selling pressure on initial days as impulsive investors look to exit the stock with some listing gains Value investors start buying into such stocks once they come to free floor&rdquo said Tulsianp


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