Shares of Popular Vehicles and Services Ltd (PVSL) made a muted debut at Dalal Street on Tuesday and the company failed to find buying interest from the investors on its maiden trading session. The stock was shunned by the investor after a soft listing at the bourses.
Shares of Popular Vehicles were listed at a discount of 1.97 percent at Rs 289.20 on NSE, against an issue price of Rs 295 apiece. The auto-dealership kicked-off its maiden trading session at Rs 292 on BSE, a discount of 1.02 percent over its issue price. However, the stock dropped another 10 per cent to Rs 262.90, extending the overall fall to 12 percent over the issue price.
Analysts tracking the issue are mostly positive on the issue in the longer run and suggest investors to hold it. However, the believe the investors should have a strict stop-loss in place.
Popular Vehicles & Services is a well-established automobile dealer with a presence across four states and longstanding relationships with leading OEMs, PV&S boasts a fully integrated business model and a proven track record of capitalizing on growth opportunities but listed at discount, said Shivani Nyati, Head of Wealth at Swastika Investmart.
