Speciality Restaurants stock jumped more than seven per cent over the issue price on its debut trade on the bourses on Wednesday, even as the broader market settled in the negative territory. The stock which got listed at Rs 153 with a premium of over two per cent over its issue price of Rs 150, surged 7.1 per cent and touched its upper circuit limit of Rs 160.65 on the Bombay Stock Exchange (BSE).
On the National Stock Exchange, the stock opened at Rs 152, then surged to its upper circuit limit of Rs 159.60, up 6.4 per cent.
Speciality Restaurants has 82 eateries under 10 brands, including Mainland China, Oh! Calcutta, Sigree, Flame & Grill, Machaan, Sweet Bengal and Just Biryani.
“This is a proxy on the Indian consumption story and with the success of Jubilant Food works, the kind of value creation it had received, it was only expected that the stocks of those companies which are in the food business are likely to do very well,” Unicon Financial Solutions chief executive officer Gajendra Nagpal said. In 2010, Jubilant FoodWorks, which runs Domino’s Pizza chain in India, had listed with a premium of 11.44 per cent on the BSE. The initial public offering of Speciality Restaurants was oversubscribed 2.54 times. The proceeds will be used for opening new restaurants, repayment of term loan and general corporate purposes.