Shrugging off the weakness witnessed on the listing day, shares of SJS Enterprises rose as much as 5 percent on Tuesday. Though after paring most gains, the stock was trading 1.2 percent higher at Rs 516.15 per share on the BSE at 1:57 PM.
On Monday, shares of the decorative aesthetics products maker had listed at Rs 540 on the BSE, a 0.4 percent discount to the issue price of Rs 542. On the NSE, the scrip was listed at Rs 542, equivalent to the issue price.
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The stock had fallen over 4 percent on the BSE after the market debut.
Market participants believe the buying enthusiasm in newly listed stocks including SJS Enterprises is in hopes of clocking decent returns in the weeks coming ahead.
"With the bumper listing and post-listing gains in Paras Defence, investors are hoping the IPO frenzy would help them get decent returns. This has strengthened the risk-appetite for newly listed stocks, such as SJS Enterprises even as it made a tepid debut," said Purvesh Shelatkar, head of institutional broking at Monarch Networth Capital.
On the BSE, Paras Defence was listed at a share price of Rs 475, over a 171 percent premium to the higher end of its issue price range. At 1:52 PM, the stock was trading at Rs 780.55.
An institutional equity sales trader also echoed a similar view and added, that the retail investors are gung-ho on IPOs and the newly listed stocks in hopes of making a quick buck.
At 1:56 PM, shares of Sigachi Industries were up 5 percent while those of PB Fintech soared 18 percent on the BSE.