Recent listings like AU Small Finance Bank, Eris Lifesciences, HUDCO and CDSL crashed 5-11 percent intraday Friday after sharp rally in last few sessions that lifted these stocks to new highs.
AU Small Finance Bank shares shot up more than 100 percent (from issue price) since the listing on July 10, which means in just five sessions.
The reasons behind this rally could be – first is that the market momentum remained strong in these sessions and second is that it is the first small finance bank to list on exchanges so the appetite was warranted.
AU Small Finance received a license from the Reserve Bank of India to set up small finance bank in December 2016 and commenced SFB operations in April 2017.
The rally was also spilled over to other non-banking finance companies like Equitas Holdings, Bharat Financial, Ujjivan Financial etc.
Second largest depository CDSL, which was the first one among depositories to list on exchanges, shot up more than 200 percent (from issue price) since the listing on June 30.
At 12:50 hours IST, Central Depository Services was down 7 percent at Rs 413.20; AU Small Finance Bank was down 9.82 percent at Rs 623.30; Eris Lifesciences down 3.5 percent at Rs 655.50 and Housing & Urban Development Corporation down 4.91 percent at Rs 92.90 on the NSE.
[“Source-moneycontrol”]
