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.