Adani Wilmar makes tepid market debut: Right time to buy the stock?

Adani Wilmar made a tepid market debut today, with its shares listing at a 3.91% discount to their issue price. A majority of analysts expected the stock to list in a range of 15% to 20% premium to the IPO price. The company offered its shares in a price band of Rs 218-Rs 230.

However, the weak market sentiment seems to have affected the Adani Group firm's market debut today.

Sensex which opened 178 points higher at 57,799 fell 324 points lower to 57,296 at 10:54 am today. Nifty too fell 140 pts to 17,073 after opening 66 points higher at 17,279.

The Indian equity market was trading in the red for the fourth consecutive session today which affected the listing of the Adani Group firm.

Adani Wilmar makes muted market debut, stock lists at 4% discount to issue price

The IPO of Adani Wilmar was subscribed 17.7 times on January 31. The retail portion got bids 3.92 times the allocated portion . Those who were not allotted shares during the IPO can buy them from the secondary market today.

Here's a look at what analysts said about the trading opportunity in the stock post its lacklustre listing on BSE and NSE.

Santosh Meena, Head of Research, Swastika Investmart said, "Adani Wilmar is debuting the secondary market with a minor loss against the expectation of listing gain of 10-15%. Tepid listing of Adani Wilmar can be attributed to weak market sentiments otherwise fundamental and valuations were good for this IPO. Those who applied for listing gain can maintain a stop loss of Rs 200 while long-term investors should hold it. New investors can also look at buying opportunities at initial weakness."

Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said, "The stock listed at a discount owing to the weak sentiments in the secondary market during the last few trading sessions. It is evident that investors who have subscribed the issue solely for listing gains would not be happy and can square off their positions in the range of Rs 255- Rs 260. Short-term investors can hold the stock and book profit at 30 to 40 percent i.e they can book profits at Rs. 290-300. Long-term investors and investors looking to buy the stock on the listing day can consider holding / buying this stock, given its wide distribution, healthy financials, strong brand recall, increasing reach and household consumption, its prospects appear to be optimistic over the long term."

Earlier, Adani Wilmar stock listed at a 3.91% discount to its issue price on BSE and NSE. Shares of the Adani Group firm made their market debut at Rs 221 on BSE. The issue price of the IPO stood at Rs 230.

The company offered its shares in a price band of Rs 218-Rs 230. Market cap of the firm stood at Rs 28,722 crore. Total 3.19 lakh shares of the firm changed hands amounting to a turnover of Rs 7.03 crore on BSE.

On NSE, the stock listed at Rs 227, down 1.30% to issue price. Market cap of the firm rose to Rs 29,502 crore. Total 2.20 crore shares of the firm changed hands amounting to a turnover of Rs 500.19 crore on the NSE.

The IPO was held from January 27 to January 31.