Baazar Style Retail Ltd, a company backed by Rekha Rakesh Jhunjhunwala, made its much-anticipated stock market debut today. The company’s shares listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) at ₹389 apiece, exactly matching its issue price.
Despite strong expectations fueled by pre-listing grey market trends, the debut was rather lackluster. The grey market had indicated a possible 10-15% premium over the issue price, leading investors to expect a listing at a higher value. Shares in the grey market had been trading at an approximate 8% premium in the days leading up to the official listing.
However, when trading commenced, the stock opened at ₹389, offering no immediate profit to investors who had participated in the IPO. On both the BSE and NSE, the profit per lot was ₹0, leaving those hoping for a premium on the first day somewhat disappointed.
Baazar Style Retail had garnered significant attention due to its strong IPO subscription figures and the involvement of a well-known investor like Rekha Rakesh Jhunjhunwala. The company had set its issue price at ₹389 per share, with retail investors being allotted shares in lots of 38.
The market debut, while stable, did not live up to the high expectations set by the grey market buzz. Investors now turn their attention to the company’s future performance to see how it fares post-listing.