Kalyan Jewellers India trades at 12.53% discount, what should be your listing strategy?

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Shares of Kerala-based Kalyan Jewellers India opened at Rs 73.95 per share on the National Stock Exchange, marking a discount of 15% from the IPO price of Rs 87 per share. On the BSE, the jeweller opened at Rs 73.90, a markdown of 15.06%.

In late noon trades, the stock recovered from its opening price yet was trading below issue price of Rs 76.10 losing down by Rs 10.90 or -12.53%. It made an intraday high of Rs 295.95 and a low of Rs 271.15, on the BSE. Giving no opportunity for exiting with listing gains.

“Even at the current level, Kalyan Jewellers looks expensive. Due to COVID-19 rising again a slowdown in the wedding sector is imminent that will impact the demand for its products. With gold prices coming down there could have some sort of hedging loses,” said independent market expert, Ambareesh Baliga.

Kalyan Jewellers India Ltd. (KJIL) is one of the largest jewellery companies in India. It has become a pan-India jewellery company, with 107 showrooms located across 21 states and union territories in India, and also have an international presence with 30 showrooms located in the Middle East as of December 31, 2020. All of its showrooms are operated and managed by themselves.

“Kalyan Jewellers is expensive compared to others, competition from listed and non listed players is pretty huge. I would suggest to wait for a few weeks as we follow the IPO base building pattern. Since we don’t have historical data cant comment on the technical side one should have a Wait n watch strategy,” said Mayuresh Joshi, Head of Equity Research of William O’Neil.

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