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After a spectacular market debut on Tuesday, shares of LatentView Analytics on Wednesday surged 20 per cent intraday to hit the upper price band amid heavy buying interest from investors.
The stocks touched an intra-day high of ₹586.30 on the BSE after listing at a premium of 197 per cent on Tuesday. LatentView Analytics scrip closed at ₹585.30 on BSE, which is close to 200 per cent increase from its issue price of ₹197 per share.
Kranthi Bathini, Director of equity strategy at WealthMills Securities, attributed the quality of LatentView’s management, attractive issue price, strong fundamentals and broad visibility of the business as some of the major factors that are attracting investors towards this stock since its listing.
“But if you ask me if I will suggest people to buy at this price, I would ask retail investors to wait and watch. While existing investors can take some small profit from the table, new investors can think of investing in a staggered manner,” he added.
Shares of One97 Communications, the parent company of digital payments major Paytm, also gained over 17 per cent to close at ₹1,753.15 apiece on BSE after testing an intraday high of ₹1,790. Paytm’s ₹18,300-crore IPO, India’s largest-ever, witnessed a disastrous stock market debut listing at a 27 per cent discount from the issue price of ₹2,150.
The scrip even touched an intraday low of ₹1,271.25 on Monday and has been recovering over the last two days. However, Wednesday’s closing price is still 18 per cent lower than its issue price.
“After nearly ₹40,000 crore of wealth destruction, some kind of value buying has emerged in Paytm's stock. Some traders and investors with good risk appetite have been buying this stock,” Bathini said.
The stock price rally of these two recently listed companies came on a day when the domestic benchmark indices BSE Sensex and NSE Nifty were down by 323 points and 88 points respectively.
“Stock price of another new-age company Nyaka also went up today. In effect, it shows that money is moving from the traditional line of businesses towards such new-age businesses,” Kranthi added.
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