Radiant Cash Management lists the shares at a premium. Buy, Sell or Hold?

 

• Radiant Cash Management share price made its Dalal Street debut at a nearly 4 per cent premium to its upper price band of ₹99 per share 

Radiant Cash Management shares made a positive opening on Dalal Street and after the stock got listed at ₹99.30 level, it touched an intraday high of ₹116.70 on BSE. However, the NBFC stock started profit-booking soon and is currently trading at ₹106.50 on BSE, registering a premium of about 7.50 per cent above its upper price band of ₹99 per equity share. 

According to market analysts, Radiant Cash Management shares have made a positive opening mainly due to positive sentiment at Dalal Street. Otherwise, the public issue was priced at a high valuation, which led to a response from retail and other categories of investors. He said that allottees should book profits and exit the stock as it may go down a lot after trend reversal in Indian stock markets. 

Speaking on Radiant Cash Management share price listing, Avinash Gorakshkar, Head of Research, Profitmart Securities said, "I maintain that the stock could be muted for discounted listing and a lot will depend on the market sentiments. As Dalal Street is closing. Higher from last two sessions and even today at opening bell of stock market, overall positive sentiment was intact. It has worked in favor of NBFC issue. But, allottees are advised That they book such positive openings and gains and exit their positions." 

Advising allottees to book profits and exit, Anuj Gupta, Vice President - Research, IIFL Securities said, "Around 80 per cent of the total proceeds have been reserved for OFS (Offer for Sale). This means, NBFC The company is going. This public offer will be highly profitable as it will not have much impact on its balance sheet or financials. Therefore, whatever listing benefit is available to the allottees, they should book that listing premium and exit with immediate effect Should exit as there could be heavy selling. Taking positions in the stock when market sentiment turns negative." 

The Radiant Cash Management Services Initial Public Offer (IPO) was subscribed 53 per cent on Tuesday, December 27, 2022, the last day of subscription. The initial share-sale received bids for 1,45,98,150 shares against the offer of 2,74,29,925 shares. on offer. The issue, opening on December 23, 2022, had a price band of ₹94 to ₹99 per equity share for the ₹388 crore public offer.