With the increasing number of IPOs coming every week, many people are trying to make a quick buck off the listing gains. Some also invest in IPOs to get an affordable entry to their desired stock for long-term wealth creation. One such popular IPO i.e Awfis Space Solutions Ltd has been listed today. Despite weak market momentum, Awfis Space Solutions made a decent debut. It was listed at a premium of 13.58 percent at Rs 435. On BSE, with a premium of 12.86 percent, it was listed at Rs 432.25. Its price band was Rs 364-rs 383.
So, now the question is after getting allotment should you hold AWFIS stocks for long-term or exit after taking immediate benefit of listing gains. Let’s see what experts have to say.
AWFIS stock: Long-term or Listing gain?
When asked if investors should exit the AWFIS stock to cash off the listing gains, Dr Ravi Singh, Senior Vice President, Retail Research at Religare Broking said that partial exiting can be done. That means you can sell off some shares to take benefit of listing gains. But the remaining shares should be kept for long term. He also suggested to set today’s closing price as the stop loss for next two days.
Dr Ravi Singh was also asked if investors who have not got the allotment should try to enter the stock now. He answered in the negative and suggested to wait for few days.
Reason for Positive Sentiment
Awfis Space Solutions is a loss-making company. Its cash flow is negative. It means expenses can’t be covered by sales alone. So company will need money from investments and financing. Despite this Awfis IPO was subscribed over 108 times. Experts believe that asset-light business model and healthy growth prospects are some of the factors that contributed to positive sentiment. Asset light business model simply means that company has small amount of fixed assets on its balance sheet. Among the top 5 benchmarked players, AWFIS office space is ranked first in the flexible workspace segment. Awfis is present in all Tier 1 cities and seven Tier 2 cities. It is present in 16 cities and in the maximum number i.e a total of 48 micro-markets in India.
AWFIS Subscription
AWFIS aimed to collect ₹599 crore via IPO. As per NSE, it received bid for 93,34,36,374 shares against 86,29,670 shares on offer. The company offered fresh issue of shares worth Rs 128 crore. While 470.93 crore worth shares were a part of offer-for-sale. Out of the total subscribers, non-institutional investors category received 129.27 times subscription. For Qualified Institutional Buyers (QIBs) it was 116.95 times. Finally Retail Individual Investors (RIIs) got subscribed by 53.23 times.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Awfis Space Solutions shares got listed at a premium of 13.58 percent at Rs 435 on May 30, 2024. Awfis Space Solutions is a loss-making company. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
