BSE makes a strong debut, soars 49% over issue price in intra-day trade

 

LATEST NEWS – Shares of Bombay Stock Exchange (BSE) made a strong debut on Friday, with the scrip listing at Rs 1,085, a 35% premium over the issue price of Rs 806 on the National Stock Exchange (NSE). The stock hit high of Rs 1,200, up 49% against its issue price within minutes of listing. At 10:02 the stock was trading at Rs 1,190, 48% higher as compared to its issue price on the NSE. Around 5.66 million shares changed hands on the counter on the NSE so far.

“Although the stock is bit expensive at this point in time. At the current levels, the stock is trading at 28x trailing price-to-earnings (PE). Going ahead, more demand is expected as the allotment has not been up-to-the-mark. I believe another 20% upside is possible in the short-to-medium term. However, from a lonfer term perspective, it can even double from the current levels given its unique business model. My advice is to not sell this stock if you already hold it, and add more whenever the stock corrects by 10-15%,” said A K Prabhakar, head of research at IDBI Capital Markets. READ MORE

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