Ace investor Madhusudan Kela-backed Founders Collective Fund has scored a lucrative payout in quick time, earning a 51.7% return on its investment in recently listed MV Electrosystems in just three trading sessions.
The rally unfolded on Monday as shares of the Mumbai-based electrical equipment manufacturer extended gains after a stellar debut. The stock jumped 5.4% to reach an intraday peak of Rs 644.80 per share on the National Stock Exchange (NSE).
At its daily peak of Rs 644.80, MV Electrosystems was up almost 52% from its IPO price of Rs 425, showing strong investor enthusiasm for railway sector stocks.
Ahead of the public offer, Kela's Founders Collective Fund participated in the anchor book allocation, acquiring 1.64 lakh shares, representing a 5.36% stake in the company, at the offer price of Rs 425 per share.
Also Read: MV Electrosystems IPO Listing Highlights: Shares Close At 46% Premium To Issue Price On NSE, BSE
The total initial investment stood at approximately Rs 7 crore.
As the stock scaled to Rs 644.80 on Monday, the total market value of the fund's stake swelled to Rs 10.58 crore.
It translated to an absolute gain of roughly Rs 3.60 crore (or 51.7%) in just three days of market trading.
MV Electrosystems launched its Rs 290-crore public issue with a price band of Rs 400-425 per share.
The stock made its market debut on Thursday, August 6, listing at Rs 520 per share on the NSE, a healthy 22.35% premium over the issue price. Since listing, strong buying momentum has pushed the stock up another 24% from its opening price.
Also Read: MV Electrosystems Vs Juniper Green: Which IPO May Deliver Better Listing Gains?
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