Happy Forgings lists with 17% premium; Credo Brands, RBZ Jewellers see muted stock market debut

Wednesday saw the listing of three initial public offerings on Indian stock exchanges. Happy Forgings listed with a 17 per cent premium, while Credo Brands and RBZ Jewellers made their debuts largely on a muted note.

Happy Forgings listed at Rs 1,000 per share compared to its IPO issue price of Rs 850.

"Happy Forgings presents a mixed bag for investors. The lower-than-expected listing raises concerns, but the decent gain and strong fundamentals offer a counterpoint," said ShivNyati, Head of Wealth, Swastika Investmart Ltd.

"Given the uncertainty surrounding the listing, a cautious approach is recommended. Existing investors in the IPO may consider holding their shares with a stop loss at 900. However, investors who were looking for listing gains may exit their positions," Nyati added.

Credo Brands, the company behind the Mufti brand, made a lukewarm debut on the stock markets, listing at Rs 282 per share, almost flat compared to its IPO price of Rs 280.

"Despite the disappointing listing, Credo Brands still possesses its core strengths, including a strong brand, a wide distribution network, and consistent financial performance. However, the flat debut highlights the potential risks associated with the highly competitive market, seasonality, and current market sentiment," Nyati added. Long-term investors with high-risk capacity are adviced to hold their position by keeping a stop loss.

RBZ Jewellers' stock market debut mirrored pre-listing whispers, landing at Rs 100 per share, flat listing with zero listing gain on its issue price.

"While RBZ Jewellers possesses strong fundamentals and a fair valuation on the surface, the significant risks cannot be overlooked. The flat listing serves as a stark reminder of the potential pitfalls associated with gold price volatility, client concentration, informal artisan arrangements, and intense competition. Thus, investors are suggested to exit their positions," Nyati said.

Meanwhile, the broader market indices - Sensex and Nifty - were in the green, tracking firm cues from Wall Street. They were about 0.6 per cent higher each at the filing this report.

"There are areas of concern which investors have to be careful about. Several IPOs getting heavily oversubscribed is an indication of exuberance," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Investors should give priority to high quality bluechips which are doing well and have good earnings visibility. A correction in the broader market is inevitable," added Vijayakumar.