Premier Energies Shares Plunge 13% After Stellar Market Debut—Is It Time to Buy, Sell, or Hold?

Shares of Premier Energies took a sharp 13.4% fall on Tuesday, hitting a day’s low of ₹860 on the BSE. This drop came after the stock made a strong debut, listing at a 120% premium with prices of ₹990 on the NSE and ₹991 on the BSE.

Before its market debut, Premier Energies’ shares were trading at over a 100% premium in the unlisted market. The company’s Initial Public Offering (IPO) had attracted significant interest, being oversubscribed by 74 times, largely due to strong demand from non-institutional investors.

The impressive listing of Premier Energies was in line with the high expectations set by its strong financial performance, solid investor interest, and favorable market conditions. The company’s diversified customer base, robust order book, and recent growth in profits also contributed to the positive sentiment.

Analysts’ Insights

Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted Premier Energies’ strategic positioning and focus on innovation as key factors that set it apart in the competitive solar manufacturing industry. Nyati mentioned that investors who bought shares during the IPO might consider booking profits now, but those who wish to hold should set a stop-loss at ₹890.

Future Outlook

Analysts believe that the stock, which was reasonably valued before its listing, is now in a strong position to benefit from the growing demand in the renewable energy sector. However, the significant gains since the listing have stretched its valuations, prompting some to recommend profit-taking at current levels. Prashanth Tapse, Senior VP (Research) at Mehta Equities, advised conservative investors to book profits, while those willing to take more risks might continue holding the stock for the long term, given the positive outlook for the renewable energy sector.

By 11 am, Premier Energies shares were trading 12% lower at ₹871 on the BSE.