Rally in CAMS, Chemcon fizzles out despite stellar stock markets debut

Mumbai: The rally for two new stock listings fizzled out during the day on Thursday, despite a stellar debut by both Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals Ltd.

The stocks saw sell-offs by investors amid an overall market rally. The BSE Sensex closed at 38,697.05, gaining 629.12 points, or 1.65%, while the Nifty ended at 11,416.95 up 169.40 points or 1.51%.

Shares of CAMS ended at Rs1,401.60, gaining 13.95% over its issue price of Rs1,230 apiece. However, it ended 7.67% down from its debut price of Rs1,518, a 23.41% premium over its issue price. It hit an intraday high of Rs1,550 and low of Rs1,306.20.

Analysts had said the CAMS IPO valuation was at a discount to nearest comparables such as asset management companies, exchanges and depositories, and has a scope to re-rate.