Cox & Kings breaks the IPO jinx,closes at a whopping 28% above Issue Price

The IPO jinx has finally been broken.We have seen quite a few IPO’s come and go but none of the recently listed IPO’s carried any steam.So much so that even the established ones like IndiaBulls failed to make any impression.

However, Cox & Kings has defied all the odds and made a swashbuckling entry into the markets.The  share listed at Rs 343.20 on the NSE today, at a premium of 4% to its issue price while on the BSE it opened at Rs 304.10, below its issue price.However, the share surged to a  intraday high of Rs 433.90.A whopping ~30% premium to its issue price.

Cox & Kings had been oversubscribed over 6 times during the IPO stage and given the fundamentals , it seemed that the IPO might actually turn out to be a hit.But then, all the other IPO’s had also been oversubscribed but none of them managed to end on a premium.However, as i mentioned in the earlier post,

An IPO grade of 4 by CARE signifies above average fundamentals and the 300 odd price range makes it an interesting choice even with small time investors.

Take that for an interesting choice!! A 30% upside on the very first trading day defies all the odds.The market reaction was hugely positive for this scrip which saw total traded quantity of 2,98,96,728 shares and turnover at Rs 1,21,948.75 lakh.

What is even more interesting is the fact that Cox & Kings surged even when NIFTY and BSE Sensex ended in RED.The scrip really had things going for itself.

However, it will be interesting to see how the scrip behaves from now on.But, Cox & Kings has broken the IPO jinx big time which could provide a sigh of relief for the companies coming up with new IPO’s.

Will the exceptional performance of Cox & Kings bring the much needed IPO confidence back in the market? I won’t bet on it but then this might just be the positive sign that the market needed.

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