India’s equity markets witnessed sharp profit booking in newly listed shares on Tuesday, with Kalpataru Projects International, Globe Civil Projects, and Ellenbarrie Industrial Gases falling up to 5% intraday. The correction comes after a strong debut rally driven by robust subscription demand, reflecting the common pattern of early listing volatility as investors book gains.
Market Performance Summary
| Company | Listing Date | Listing Price (INR) | Closing Price Day 1 (INR) | Day 2 Intraday Low (INR) | % Fall Day 2 |
|---|---|---|---|---|---|
| Kalpataru Projects International | July 1, 2025 | 635 | 658 | 625 | -5.0 |
| Globe Civil Projects | July 1, 2025 | 202 | 210 | 200 | -4.8 |
| Ellenbarrie Industrial Gases | July 1, 2025 | 428 | 438 | 420 | -4.1 |
Kalpataru Projects International
Kalpataru Projects International, which debuted at Rs 635 on Monday against an issue price of Rs 615, saw profit booking pressure today, with shares slipping 5% to an intraday low of Rs 625 before recovering slightly by market close.
- IPO Details: The company raised Rs 1,200 crore to fund working capital, international operations, and debt repayment.
- Analyst View: Despite strong fundamentals, near-term volatility is expected as initial investors exit to lock in gains, especially after an oversubscription of 7.6 times in its IPO.
Globe Civil Projects
Shares of Globe Civil Projects, the construction services company, also declined nearly 4.8% intraday after a stellar listing premium of ~10% on Monday.
- IPO Size: Rs 420 crore
- Use of Funds: Expansion of EPC projects, equipment purchases, and general corporate purposes.
- Market Trend: Analysts attribute the fall to profit booking by HNI and retail segments which constituted over 65% of allotment.
Ellenbarrie Industrial Gases
Industrial gases manufacturer Ellenbarrie, which listed at Rs 428 against an issue price of Rs 410, fell up to 4.1% intraday on Tuesday, as traders booked partial profits amid broad market volatility.
- IPO Proceeds: Rs 310 crore to be utilised for plant modernisation and capacity expansion in West Bengal and Odisha.
- Expert Comment: Analysts maintain a positive medium-term outlook, citing strong order pipelines from steel, cement, and chemicals sectors.
IPO Market Trend Analysis
| Company | IPO Size (Rs crore) | Subscription (times) | Listing Gain (%) | Current Gain From Issue Price (%) |
|---|---|---|---|---|
| Kalpataru Projects International | 1,200 | 7.6 | +3.5 | +1.6 |
| Globe Civil Projects | 420 | 6.2 | +4.0 | -1.0 |
| Ellenbarrie Industrial Gases | 310 | 5.8 | +4.4 | +2.4 |
The trend shows that despite initial listing gains, all three companies saw a correction on Day 2, typical of recent IPOs where early market enthusiasm meets cautious profit realisation.
Reasons For Profit Booking
- High Listing Premiums: Early gains trigger automatic selling, particularly by retail and small HNI investors looking for quick returns.
- Market Sentiment: Nifty and Sensex traded flat amid global macroeconomic concerns, prompting conservative trading in high-beta IPO stocks.
- Technical Resistance: Many new listings face near-term technical barriers due to oversupply as initial investors exit.
Brokerage Views
| Brokerage | Stock | Recommendation | Target Price (INR) | Key Rationale |
|---|---|---|---|---|
| ICICI Direct | Kalpataru Projects | Buy | 720 | Strong order book, international diversification |
| HDFC Securities | Globe Civil | Hold | 215 | Execution capabilities priced in near term |
| Kotak Institutional | Ellenbarrie Gases | Buy | 460 | Stable margins, industrial demand tailwinds |
Expert Opinions
Ajay Bagga, Market Veteran:
“IPO volatility is normal. Investors with 6-12 month horizons will benefit from holding quality infrastructure and manufacturing companies.”
Devang Mehta, Head – Equities, Centrum Broking:
“India’s IPO market remains healthy with broad-based participation. Listing day profits are attractive but long-term growth will accrue to patient investors.”
IPO Market Outlook For July 2025
The strong pipeline of IPOs continues into July, with upcoming issues from:
- Curefoods (Rs 800 crore)
- FirstMeridian Business Services (Rs 740 crore)
- German Green Steel and Power (Rs 450 crore)
Market experts believe profit booking in recent listings will not dampen overall IPO sentiment as long as market liquidity and institutional appetite remain strong.
Recent IPO Sector-Wise Performance Snapshot
| Sector | Avg Listing Gain (%) | Avg Day 2 Fall (%) | Overall Sentiment |
|---|---|---|---|
| Infrastructure & EPC | +3.8 | -3.2 | Stable |
| Manufacturing | +4.5 | -2.7 | Positive |
| IT & Services | +5.1 | -1.9 | Strong |
Conclusion
The profit booking witnessed in Kalpataru Projects, Globe Civil Projects, and Ellenbarrie Industrial Gases is part of the natural IPO listing cycle as markets adjust to initial investor exits. While near-term volatility may persist, fundamentally strong companies with robust order books and sector tailwinds are expected to deliver sustainable returns for long-term investors.
Disclaimer:
This news article is based on stock exchange filings, brokerage research, and market data. It is intended for informational purposes only and should not be construed as investment advice. Readers are advised to consult their financial advisors before making any investment decisions.
