Abans Holdings shares plunge 24% after tepid listing

Shares of Abans Holdings made a weak market debut on Friday. The stock was listed at Rs 273, a slightly higher premium of 1.11 per cent over its issue price of Rs 270. However, Abans Holdings slumped 23.49 per cent to hit a day low of Rs 218.65 on BSE.

On NSE, the stock plunged 23.63 per cent to hit a day low of Rs 218.40 after listing a tad higher.

The Rs 346 crore IPO was sold from December 12 to December 15 and was subscribed 1.10 times.

The category meant for QIBs was subscribed 4.10 times, non-institutional investors got 1.48 times subscription, and the retail individual investors (RIIs) portion was booked 40 per cent.

Also Read | Landmark Cars makes weak market debut, lists at 7% discount over issue price

Abans Holdings stated that proceeds from the IPO would be utilised towards investment in its NBFC (non-banking financial company) subsidiary, Abans Finance.

The company operates a diversified global financial services business. It currently has a presence in six countries, including the UK, Singapore, UAE, China, Mauritius, and India.

Aryaman Financial Services was the sole book-running lead manager to the issue, while Bigshare Services was the registrar.

Post listing view:

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, Abans Holdings' revenue has declined recently, along with reporting negative cash flow in the past. "It is a holding company that is dependent on its 17 subsidiaries and operates in a highly competitive market. Those who applied for listing gains can keep a Rs 240 stop loss," he stated.

Also Read | Radiant Cash Management Services IPO opens today: Should you subscribe or give it a miss?