EMS Ltd debuts strong on Indian bourses, despite weak market conditions

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EMS Ltd debuts strong on Indian bourses, despite weak market conditions
Credit: © Reuters.

EMS Ltd made a notable debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Thursday, September 21, 2023. The company's shares listed at ₹282.05 per share on the NSE and ₹281.55 per share on the BSE, marking a premium of approximately 33% over its initial public offering (IPO) price of ₹211 per share.

The listing day saw the EMS share price opening at ₹282.05 on NSE and at ₹281.55 on BSE, delivering over 33% listing gain to the allottees, despite the Indian stock market extending its slide for the third day in a row. By 11:55 AM, the stock was trading at ₹281.2 on the NSE and ₹281.4 on the BSE.

The company's IPO was open for bidding between September 8 to September 12, raising ₹321.24 crore from the primary markets by offering shares in a fixed price band of ₹200-211 per share. The issue was subscribed 76.21 times overall, with qualified institutional bidders (QIBs) oversubscribing their allotment by 149.98 times, non-institutional investors subscribing at a rate of 84.39 times, and retail investors subscribing 30.55 times their allocation.

Despite the strong listing performance, EMS witnessed a slightly softer debut than anticipated as it had commanded a premium of ₹85-90 in the grey market a day before its official listing.

Post-listing insights were provided by Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., who commended EMS Limited's debut in a challenging market environment. "The company's strong fundamentals and good subscription levels were positive factors," Mishra said.

As for investor strategy, Prashanth Tapse, Senior Vice President — Research at Mehta Equities, suggested that EMS share allottees should book profit and exit due to weak stock market sentiments. However, those with a long-term view could re-enter once the market stabilizes.

Mahesh M. Ojha, AVP - Research and Business Development at Hensex Securities, echoed Tapse's views, advising investors to book at least 50% profits on the listing day itself. The rest, he added, could be kept on hold for medium to long-term investment.

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