Jobaaj Stories
Quartz manufacturer Global Surfaces Ltd. was the newest entrant on our bourses as investors cheered the stock's impressive debut.
Global Surfaces Ltd (GSL) is a natural stone manufacturer incorporated in 1991. It makes various products such as marble, granite, limestone, onyx, quartz and several other metals quarried from the earth.
Its products are used for flooring, wall cladding, countertops and other items. It has two units in Rajasthan and sells its products within and outside India.
Before the launch of its IPO, the company raised Rs 46.5 crores from 3 anchor investors Light Fund VCC, Saint Capital Fund and VPK Global Ventures.
The company's Rs 155 crores IPO saw great participation from investors. QIBs, who had 50% of the issue reserved for them, oversubscribed their portion 8.95x times, while RIIs oversubscribed 5.12x times. However, HNIs participated the most as their portion was oversubscribed a staggering 33.1x times, taking the entire issue to an oversubscription of 12.21x times!!
Although the Indian market sentiment has been low, the overwhelming interest in the issue led to analysts expecting an 8-10% premium upon listing.
When trading began today, the stock smashed all estimates as it listed at Rs 164 per share, marking a 17% listing gain! Over the day, investors remained bullish on the stock as it surged all the way to close at Rs 171.05 per share, up 22.2% in a single day.
If an investor invested in the IPO an initial investment of Rs 14,000 (Rs 140 x 100 shares) would've grown to Rs 17,105 (Rs 171.05 x 100 shares) in a single session!!
Since the market conditions are volatile, thus the brokerages are suggesting investors book profits and exit. Other brokerages feel holding the stock for a long-term basis but are asking them to maintain a stop loss at the IPO price.
- Aman Agarwal
