Sona Comstar, Shyam Metalics show diverse listing pattern

NEW DELHI:  Two companies listed on the exchanges on Thursday with diverse listings — one saw a stellar opening while the other witnessed a lacklustre opening. However, these two IPOs are expected to give promising returns in the next few years, say analysts. 

Shares of Sona BLW Precision Forgings (Sona Comstar) closed 20 per cent higher (upper circuit) even as its listing gains of 4 per cent were lower than many IPOs of recent times. The auto-component maker got listed at Rs 302.4 on the BSE, but ended the day at Rs 362.85, up 20 per cent. Its initial public offer (IPO) had received a tepid response and got subscribed by only 2.28 times last week. 

Shyam Metalics & Energy, on the other hand, made its listing debut with a bang. While its stock gained only 2.41 per cent during the day to close at 375.85 on the BSE, it got listed with a premium of 19.93 per at Rs 367. The Rs 909-crore IPO of Shyam Metalics was subscribed 121.43 times between June 14-16. 

According to analysts, the two companies have strong fundamentals and can give decent returns to investors in the next few years.  “Investors can remain invested and ride the favourable metal cycle for the next few years, especially for a company like Shyam Metalics which has low leverage levels,” said Milan Desai, lead equity analyst, Angel Broking. As for Sona, the stock could be a wealth creator in 3-5 years as the company has proven track record.