Premier Energies Ltd was the biggest loser on the BSE on Wednesday as its stock nosedived by 7. 91 per cent to touch an intraday low of Rs 1,082. 20. This basically means that it lost 13. 27% of its market value and stood at Rs 1,087. 25 which was its best so far achieved at the previous session at Rs 1,264. 90. However, the stock tanked to Rs 575. In fact it has risen by 143. 8% from the issue price of Rs 450, following its great opening on September 3.
Analysts for instance called on investors to lock-in their gains at the prevailing market price especially those companies with listing gains. Ravi Singh, Senior Vice-President at Religare Broking also came up with a bearish target at Rs 1,025 for the counter and advised to accumulate the stock on declines. WealthMills Securities’ Kranthi Bathini had a similar view and encouraged investors to book profit unless if they are willing to undertake high risk.
Following the great listing of the stock, research analyst AR Ramachandran noticed that the stock was trading overvalued, thus supported the decision to sell the stock. Another report from technical analyst Shiju Koothupalakkal is that more profit taking is recommended not only because the shares have risen a lot since the issue of the scrip.
On an average BSE recorded the trading volume of only 10. 46 lakh shares as against the two-week moving average of 26. 41 lakh shares. Premier Energies was founded in 1995 which deals in solar cells, panel, solutions and it has 5 units in Hyderabad, Telangana failed.
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