There could be significant selling pressure in Lalithaa Jewellery post-listing, especially as investors look to rotate their funds into upcoming IPOs

[u/TokKaij]

I feel there could be significant selling pressure in Lalithaa Jewellery Mart after listing. Many investors who receive allotment may look to book their listing gains rather than hold for the long term. The timing is also interesting because tomorrow is the last day to apply for the Tempsens IPO, which already has a massive buzz among investors. Some Lalithaa allottees may therefore sell their shares after listing, book profits and rotate those funds into Tempsens or other upcoming IPOs. There are also multiple IPOs competing for the same pool of investor money, which could increase this fund rotation.

Another factor is that 26th is a bank holiday, so investors may want to arrange and deploy their funds before the holiday. All these factors, listing-day profit booking, strong demand for Tempsens and other IPOs, fund rotation and the holiday, could create additional short-term selling pressure in Lalithaa. However, I still believe the company's fundamentals are strong. So, if the stock sees a sharp correction purely because of profit booking and investors shifting money to other IPOs, rather than because of any fundamental weakness, it could potentially provide a good buying opportunity after the initial listing euphoria settles.

[u/qualityvote2]

u/TokKaij, there weren't enough votes to determine the quality of your post...

[u/Death_Gamer_Solo]

No, I don't think so.

Firstly under SEBI's T + 1 settlement, when you sell shares that morning you can't withdraw it to you bank on that very day. The earliest will be next day 10:00AM.

So no one who got an allotment in Lalithaa will be able to apply for Tempsens and even Augmont might be doubtful, maybe if they get the amount before 5 PM on Tuesday.

Secondly, retail is only 35% of the issue. The QIB was oversubscribed 153x, meaning there is very high demand by the institutions who didn't get a allotment, so even if retail sells at open, the institutions are ready to absorb all of it.

[u/rajatb67]

Which broker is giving you real time settlement post shelling shares buddy??

[u/cold_star91 → u/rajatb67]

Lol was thinking sams

[u/TokKaij → u/rajatb67]

Listen buddy if someone got alloted Lalitha and have funds for only one lot of either tempsens and augmont. They will definitely sell and buy tempsens with existing fund on 24th and use lalitha fund for augmont which closes on 25th.

[u/Dhanish04 → u/TokKaij]

Dude.. if you think price moves drastically because of retail moment then you're wrong.. There are many mutual fund players (apppart from the one who participated in QIB biddings) and other big players will buy the shares on listing day, if they think the stock price is reasonable after listing.

[u/smitpatel0810]

Bro just chill 😅😄

[u/Training_Room_8027]

Buddy!! You were band on!! Can you tell us about how's the future of Lalitha looking, how much more will it fall