D-Mart's stellar debut: Should you hold or book profits?

Avenue Supermarts (ASL), the operator of supermarket retail chain D-Mart, made a stellar debut on the bourses by listing at Rs 604.40 on the BSE, 102% premium against its initial public offer (IPO) price of Rs 299. On the National Stock Exchange (NSE), the stock opened at Rs 600, a 101% premium against issue price. It hit a high of Rs 650 post its listing and settled 114% higher at Rs 342 on the BSE. On NSE, the stock settled at Rs 648. Independent market analyst Ambareesh Baliga advised investors to book profits because the listing gains have been better than expected and the valuations are also not too cheap. AK Prabhakar of IDBI Capital also suggested to take profits at the current prices as the chances of more upside are limited, while the risk of downside has grown. Astrology and Numerology Trading Tips

“Valuations have become expensive at the listing price of over Rs 600. One can hold the stock for the long-term but traders should book profits and re-enter only if the stock falls below Rs 500,” said Prabhakar, adding the fresh investors should wait for the earnings of at least two quarters to come in before deciding to buy the stock. The Rs 1,870-crore offering saw 105 times more demand than the shares on offer. The issue generated bids worth Rs 1.38 lakh crore — the most since Coal India’s IPO in 2010. The fund will be used to retire outstanding debt and Rs 367 crore will go towards setting up of new stores. The qualified institutional buyer (QIB) portion of the IPO was subscribed 145 times, high-networth individual (HNI) segment was subscribed 278 times and retail investor portion saw 7.51 times more demand than the shares on offer. Commodity Trading Tips