The Shoppers' Stop scrip made a sparkling debut on the bourses on Monday. The counter closed at Rs 372.60 on the Bombay Stock Exchange, 56.60 per cent higher than its issue price of Rs 238.
The counter had opened at Rs 335 on the BSE -- a 40.9 per cent premium over the issue price. More than 4.22 million Shoppers' Stop shares were traded on the BSE on Monday.
On the National Stock Exchange, the counter closed at Rs 371.60 with a more than 7.67 million shares being traded.
Shoppers' Stop had priced its issue at Rs 238, closer to the higher end of the offer price band of Rs 210- 250. The strong Shoppers' Stop debut would lead to a re-rating of the retail sector stocks, analysts said.
S Ramesh, executive director, equity product group, Kotak Securities, said, "A sparkling debut by Shoppers' Stop has reinforced the fundamental growth prospect for the retail sector in India."
Other retail sector stocks were also in the limelight on Monday. Trent, the owner of the Westside chain of retail stores, hit a high of Rs 627.90 before closing at Rs 612.60, up 2.92 per cent over its previous closing. Pantaloon Retail rose to an intra-day high of Rs 1,150 before closing at Rs 1,111.25, up 3.76 per cent from its previous close.
A sector analyst with a domestic broking firm said, "Retail is a high growth sector and with disposable incomes on a rise, the retail sector is expected to grow at 50-60 per cent year-on-year."