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After the recent profitable listing of two initial public offerings – Snowman Logistics and Sharda Cropchem—investors in Shemaroo Entertainment had a dismal experience with its share price dipping 5 per cent on debut.
Opening on a strong note at ₹180, it slipped to close at the day’s lowest level of ₹171, as investors preferred to book profit. The company, which raised ₹120 crore through the IPO, issued shares at ₹170 apiece, while retail investors got an allotment at ₹153, with the company providing a discount of 10 per cent. The IPO was oversubscribed 7.39 times. The promoters have lowered their holding to 70 per cent from 92 per cent through the IPO.
The equity shares of Shemaroo Entertainment were listed in the ‘T’ group of securities, making delivery of shares compulsory.Paras Bothra, Vice-President (Equity), Ashika Stock Broking, said retail investors should not panic and should give some time for their investment to see a meaningful profit.
“The fundamentals of the company appear to be strong, with distribution rights for films and dramas through various mediums. Content is fast emerging as king, with mobile operators rolling out 4G service,” he said.
Stellar listings Shares of Snowman Logistics, an integrated temperature controlled logistics service provider, soared 70 per cent on its debut on the National Stock Exchange, while Sharda Cropchem jumped 66.67 per cent on its debut.
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