Sterling and wilson solar, a solar engineering solutions provider , had a weak debut on 20th august as the stock opened at 9% discount due to the tepid response of the ipo by the investors
The stock listed at Rs.706 on both NSE AND BSE against the issue price of Rs.780 and the ipo lot was of 19 shares thereby investors incurred losses , as i had discussed in my last blog that there is a major possibility that the issue will be opening at discount on tuesday and as per expectations the stock performed.
In the closing session the stock recovered itself but that recovery was not enough as the stock closed at Rs.724 having a 7% loss to the issue price, investors had to wait till tomorrow to see the stock performance
According to me there is no problem in company fundamentals and parentage, revenue is increasing but the problem persist in the price of share, i really think that the share is over priced and that is the prime reason of its opening in discount, but i will recommend investors to keep invested in this share and don’t sell out this share in loss, the support behind my suggestion is:
- Dominant position in the respective segment, hence has a major potential to grow in future
- Government policies will favour their business.
- Strong parentage of shapporji pallonjii
- can serve as the best share for long term perspective
- Past financial records are satisfactory.
So, my advice for the investors is to have patience and i beleive that in short period of time only it will recover itself and then you can exit from the script.
Sterling and wilson has been listed one day after Spandana sphoorthy and both the shares issued at discount despite both the companies are major players in their respective fields, this type of trends actually creates negativity in the minds of investors, because if these type of companies give losses to investors then the beleif of investors will be deteriorated.