Radiant Cash Management shares list at premium. Buy, sell or hold?
Radiant Cash Management shares have made a positive debut on Dalal Street and the stock surged to its intraday high of ₹116.70 apiece on BSE after listing at ₹99.30 levels. However, profit booking soon triggered in the NBFC stock and it is currently available at a price of ₹106.50 on BSE, around 7.50 per cent higher from its upper price band of ₹99 per equity share.
According to stock market experts, Radiant Cash Management shares have made a positive debut due to positive Dalal Street sentiment. Otherwise, the public issue was priced at higher valuations that led to tepid response by retail and other category investors. They said that allottees should book profit and exit the stock as it may go down much lower once there is trend reversal in Indian stock markets.
Speaking on Radiant Cash Management share price listing, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “I have been maintaining that the stock may have a muted to discounted listing and much would depend upon the market sentiments. As Dalal Street has been closing higher for last two sessions and even in stock market’s opening bell today, overall positive sentiment was intact. this has worked in favour of the NBFC issue. But, allottees are advised to take advantage of such positive opening and book profit and come out of their positions.”
Advising allottees to book profit and exit, Anuj Gupta, Vice President — Research at IIFL Securities said, “Around 80 per cent of the net proceed has been reserved for the OFS (offer for sale). This means, the NBFC company is going to benefit much from this public offer as it won’t have much impact on its balance sheet or financials. So, whatever listing gain is available to the allottees, they should book that listing premium and exit with immediate effect as there can be huge sell off taking place in the scrip once the market sentiment turns negative.”
Radiant Cash Management Services initial public offer (IPO) was subscribed 53 per cent on the last day of subscription on Tuesday, December 27, 2022. The initial share-sale received bids for 1,45,98,150 shares against 2,74,29,925 shares on offer. The issue, which opened on December 23, 2022, had a price band of ₹94 to ₹99 per equity share for its ₹388-crore public offer.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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