Anupam Rasayan disappoints on debut: What should investors do with the stock?

Anupam Rasayan IPO saw a muted listing at Rs 534.70 on the BSE, down 3.7 percent compared to the issue price. Here’s what experts are saying on what to do with the stock if you were allotted shares.

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Anupam Rasayan saw a muted listing on March 24 largely due to weak market conditions and higher valuations of the issue.

The stock opened at Rs 534.70 on the BSE, down 3.7 percent compared to the issue price of Rs 555 per share. It touched an intraday high of Rs 548.95 and low of Rs 501.15.

At 13:47 hours, the share price was trading at Rs 543.55, down 2.06 percent over the issue price, with volume of 12.14 lakh equity shares . At the same time, the BSE Sensex was down more than 1.5 percent.

Experts have advised investors, who were looking for listing gains, should sell the shares. But to the long-term investors, the analysts recommend holding on to the shares.

“We recommend short term investor or those who applied for listing gain to sell partial lot and not recommended to buy on listing day,” said Astha Jain, Senior Research Analyst at Hem Securities.

Prashanth Tapse, AVP Research at Mehta Equities, feels at Rs 555 per share, the issue was aggressively priced compared to its listed peers. Hence, considering the volatile market and cheaper peer valuation, he has also recommended investors to sell on the listing day.

For new buyers, he said it is better to wait for the prices to settle down.

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Anupam Rasayan is a custom synthesis and manufacturer of specialty chemicals, primarily focused on agro-chemicals. It operates in two distinct business verticals – one is life sciences specialty chemicals wherein it makes products related to agrochemicals, personal care and pharmaceuticals, and the second is other specialty chemicals, wherein it supplies specialty pigment, dyes, and polymer additives.

Long term call

Prashanth Tapse believes Anupam Rasayan is well-positioned for long-term play to tap the shifting global demand to India.

“In the current environment, Anupam stands well to get the favourable and industry support like Make in India theme campaign would also add impetus to the emergence of India as a manufacturing hub for the specialty chemicals industry,” he said.

For long-term view, Astha Jain has also recommended investors to hold the stock.

Anupam Rasayan raised Rs 760 crore through its public issue which was completely a fresh issue. The company will utilise fresh issue proceeds excluding issue expenses for repaying debts.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.