Shares of specialty chemical firm Ami Organics will be allotted on September 14. Currently, its shares are trading at a premium of 28 per cent in the gray market. The price of IPO is Rs 610 but it is trading at Rs 780 in gray market. The premium had dropped to Rs 95 during IPO bidding but now it has reached Rs 170. Shares of Ami Organics can be listed on September 14.
What is the strategy of investors?
Abhay Doshi, founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares, said that despite the cold response to the recent IPO, Ami Organics has got good investor subscription. Looking at this response, Ami Organics can have a good listing. This could break the chain of poor listing of IPOs in the recent past.
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What should investors do on the day of listing?
Pavitra Shetty, co-founder and trainer of Tips2Trades, says that the fundamentals of Ami Organics are strong. However, analysts say that some profit booking can be done in the listing. Half the shares can be sold with a listing gain of 15 to 20 percent. Later re-entry can be done on correct correction.
The IPO of Ami Organics was subscribed 65.54 times. The retail portion of the IPO was subscribed 13.36 percent. Equity Research Analyst at Angel Broking says short term investors should go for gains on the day of listing.