Last heard, the company was exchanging hands at a premium of Rs 200 per share in the unofficial market, which translated into 35% of the issue price of Rs 587 apiece.
Dealers tracking the grey market suggested that the company’s strong fundamentals coupled with decent response and better-than -expected listing on Monday are supporting its prospects.
Abhay Doshi, co-founder, UnlistedArena, said despite pricey valuations, the company has a strong business model leading to strong subscription during the three-day bidding process.
“The company has a robust growth model, which can boost its topline and bottomline in the coming period,” he added. “Even the government’s push on this sector is an added advantage for the company.”
Incorporated in 2008, Kaynes provides manufacturing and life-cycle support for players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, Internet of Things (IoT), IT and other segments.
Girish Sodani, Head of Equity Market, , said Keynes Technology looks like another promising company. He expected the company to list around Rs 820 per share, signalling a listing pop of 35-40%
“Investors shall book part listing gains on Day One and part within a week, considering the price movement,” he added. “It can be further purchased on dips later on for long-term investment.”
The company’s Rs 858-crore IPO was sold in the range of Rs 559-587 per share, and received a solid investor response, getting a subscription of more than 34.16 times between November 10 and 14.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 98.47 times while the one reserved for non-institutional investors (NIIs) and retailers was subscribed 21.21 times and 4.1 times, respectively.
Ravi Singhal, CEO, GCL Securities, said Kaynes has a very strong business model. “One can put a target of Rs 1,000 on the counter, whereas listing is expecting the range of Rs Rs 765-835 apiece.”
Manoj kumar Dalmia, Founder and Director, Proficient Equities, said it can give it a good listing gain. Investors can hold it with a mid-term to long-term perspective.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
