Indian stock markets witnessed contrasting fortunes for two new listings on Wednesday, July 1. Advit Jewels, a handcrafted fine jewelry maker, celebrated a strong debut with its shares listing at a significant premium. Conversely, Waterways Leisure Tourism, the company behind Cordelia Cruise, saw its shares open at a substantial discount, turning into a wealth destroyer for investors.
Advit Jewels Shines with Strong Debut
Advit Jewels (Rambhajo) made a impressive entry on the BSE, listing at Rs 188.90, marking a 36.88% premium over its issue price of Rs 138. On the NSE, the stock debuted at Rs 187, a 35.51% premium. Investors in Advit Jewels reaped profits of approximately Rs 5,000 for each lot of 100 equity shares allotted.
The IPO for Advit Jewels, which offered shares in the Rs 130-138 range, was an entirely fresh issue of 1,19,68,000 equity shares, raising Rs 165 crore. The issue was met with overwhelming demand, being subscribed 212.63 times and attracting bids worth over Rs 24,500 crore from more than 32 lakh applications.
Incorporated in 2019 and based in Jaipur, Advit Jewels specializes in handcrafted fine jewelry under the Rambhajo brand, known for its Kundan, Polki, diamond, and studded pieces.
Cordelia Cruise IPO Underperforms
In stark contrast, Waterways Leisure Tourism, operating the Cordelia Cruise brand, saw its shares settle at Rs 681 on the NSE, a 15.72% discount from its issue price of Rs 808. On the BSE, the stock opened at Rs 690, reflecting a 14.60% discount. This resulted in losses of around Rs 2,300 for investors for each allotted lot.
Waterways Leisure Tourism's IPO, priced between Rs 769-808 per share in lots of 18, was a fresh issue of up to 72,40,099 equity shares aimed at raising Rs 585 crore. The issue was subscribed 1.63 times, garnering bids worth Rs 492 crore through just over 1.15 lakh applications.
Established in November 2020 and headquartered in Mumbai, Waterways Leisure Tourism is a domestic ocean cruise operator, offering experiences focused on Indian culture, hospitality, entertainment, and cuisine.
Grey Market Trends Foreshadowed Outcomes
The performance of both companies on their listing day largely aligned with expectations set by the grey market trends. Advit Jewels had commanded a premium of Rs 50 per share, indicating a potential 36% listing gain. Conversely, Waterways Leisure Tourism was quoted at a discount of Rs 50 per share in the grey market, suggesting a listing approximately 6-7% below its issue price.