Mumbai: Chennai-headquartered non-banking finance company (NBFC) made a tepid stock market debut on Monday with the stock listing at a discount of 5% at ₹449.95 on BSE. However, the stock gained as much as 14% during the day to ₹539.95 before closing 3.27% higher at ₹489.50.
The company’s ₹1,960-crore IPO was sold in the range of ₹450-474 per share between November 9 and November 11. Only 70% of the IPO was subscribed but the issue sailed through as it met the criteria set by the Securities and Exchange Board of India for an IPO.
“The Five Star Business Finance stock is expected to remain under sell-off pressure in the upcoming sessions. My suggestion to the allottees is to exit on rise and look at other stocks that are better placed in current market scenario,” said Ravi Singhal, CEO at brokerage GCL.
