Recently-listed Premier Energies shares jump 20% to hit record high; here's what investors can do

Shares of Premier Energies Ltd, which staged a solid market debut a couple of days ago, rose sharply in Thursday's trade. The stock surged 20 per cent to hit a record high value of Rs 1,010.60. At this price, the scrip has delivered multibagger returns by rallying 124.58 per cent from its issue price of Rs 450.

The company today informed bourses that it has received order from Uttar Pradesh Department of Agriculture for the supply, installation and commissioning with five years comprehensive warranty of 8,085 solar water pumping systems across various districts in the state. This project, valued at Rs 215 crore, is scheduled for completion by March 2025.

Around 27.66 lakh shares were last seen changing hands on BSE today. The figure was lower than the two-week average volume of 28.07 lakh shares. Turnover on the counter came at Rs 261.09 crore, commanding a market capitalisation (m-cap) of Rs 45,212.67 crore.

A few analysts said investors should book some profit at current levels, given the counter's bumper listing day gains. Those with a high-risk appetite and long-term view can continue with their positions, an analyst suggested.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The stock looks fully priced-in but the management guidance is quite strong. Those who invested for listing gains can consider booking some profit. When the stock gives phenomenal listing gains, it is always better to take some profit off the table."

With that being said, investors with a high-risk appetite and long-term view can hold on to it, the market expert added.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also advised investors to book profit on the counter post its stellar listing.

The initial public offering (IPO) of Premier Energies was open between August 27 and August 29. The company raised about Rs 2,830.40 crore via its primary offering, which included a fresh share sale of Rs 1,291.40 crore and an offer for sale of 3.42 crore shares.

The Rs 2,830-crore IPO received bids worth more than Rs 1.48 lakh crore. With this feat, it became the second company after Tata Technologies Ltd to cross Rs 1 lakh crore bidding value during the initial share sale phase. The robust demand was led by institutional investors who made bids worth Rs 1.1 lakh crore.

As per BSE, investors placed bids for 3,30,91,03,446 equity shares, or 74.13 times, compared to the 4,46,40,825 equity shares offered. The allocation for qualified institutional bidders (QIBs) was subscribed 216.67 times on the final day, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 49.79 times. The employee portion was booked 10.79 times and the category kept for retail investors was booked 7.30 times.

Incorporated in April 1995, Premier Energies manufactures integrated solar cells and solar panels. Its product portfolio includes cell, solar modules, bifacial modules, EPC solutions and O&M solutions. It has five manufacturing units, all of which are situated in Hyderabad, Telangana.