Likhitha Infrastructure shares locked in upper circuit on listing day: Should investors hold or book profit?

Shares of Likhitha Infrastructure saw a better-than-expected listing on October 15. The stock opened with an 8.4 percent premium at Rs 130.10 on the BSE against the issue price of Rs 120. During the session, it rallied up to Rs 136.60 (up 13.83 percent over IPO price) to lock at 5 percent upper circuit from the opening price.

The market capitalisation of the company was at Rs 269.44 crore, with promoters' shareholding in the company at 74 percent post issue.

Analysts advised investors to prefer profit-booking either full or partial if shares list at a premium over issue price and invest that money in other quality stocks.

"Considering the small size of free float available in the market, we advise investors to sell the stock on the listing day. There are better options available in the market for investment in the infrastructure sector with no issue with respect to the traded value in the exchanges," Keshav Lahoti, Associate Equity Analyst at Angel Broking told Moneycontrol.

Astha Jain, Senior Research Analyst at Hem Securities also advised investors to book profits partially on the listing day.

Likhitha Infrastructure successfully raised Rs 62 crore via its 51 lakh shares public issue which was extended by additional three working days till October 7 from October 1. The issue opened for subscription on September 29.