Street signs: HNIs exit S Chand stock

Many high net-worth individuals beat hasty retreat because they borrowed money at higher rates

The tepid listing of S Chand and Company on May 9 seems to be driving high net-worth individuals (HNIs) away from the stock. Brokers said, with the issue listing at Rs 707, only 5.5 per cent above its initial public offering (IPO) price of Rs 670, many HNIs beat a hasty retreat because they had borrowed money at significantly higher rates. “HNIs, expecting good listing gains, had borrowed at over 20 per cent to apply for the issue. However, the listing was weak and they quickly offloaded their stakes,” said a broker. The stock closed at Rs 622 on Friday,