Abans Holdings Makes a Flat D-St Debut; Should you Buy, Hold or Sell?

Abans Holdings Share Price: Shares of Abans Holdings made positive debut as the stock listed on Friday at Rs 273 on the NSE, a premium of a per cent as compared to its IPO issue price of Rs 270. On the BSE, the stock started trading at Rs 270 per share.

The public issue was subscribed 1.10 times between December 12-15. It received bids for 1.40 crore shares against 1.28 crore on the offer. Qualified institutional buyers subscribed to 4.1 times the allotted quota, high networth individuals bought 1.48 times and retail investors bought only 40 percent shares of the quota set aside for them.

The company had reserved only 10 percent of the offer for QIBs which was viewed as a negative by analysts.

Abans Holdings provides NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stock broking, depositary services, asset management services, investment advisory services and wealth management services to corporates, institutional and high net worth clients.

What Should Investors Do?

Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd., said: “The company’s muted listing, debuted at Rs. 273 over its issue price of Rs. 270. The issue had also not received a good response from investors on both the institutional and retail sides. The company has an integrated financial services platform and strong human capital. It has global exposure, provides innovative financial products, and also has a strong relationship with clients. However, while the company’s revenue has declined recently, it has also reported negative cash flow in the past. Secondly, it is a holding company that is dependent on its 17 subsidiaries and operates in a highly competitive market. Those who applied for listing gains can keep a Rs. 240 stop loss.”

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