Shares in Coffee Day Enterprises, that runs the renowned Cafe Coffee Day chain had a weak listing on the bourses, dropping to a low of Rs 275. The shares were last trading at Rs 277, a drop of 20 per cent over its offer price of Rs 328.
The company has been loss making in FY 2015, and many brokerages had suggested an avoid on subscription to the public offer.
However, it is important to note that consumer driven stocks have caught the fancy of the market and investors are willing to pay a premium for a robust business model.
Given the solid fancy for consumer stocks, investors may lap-up the stock at a lower price. However, analysts are suggesting investors to wait before buying, as you could get the stock at a significantly lower level.