Indo-MIM shares listed about 44% above the IPO price after the issue was subscribed over 72 times.
Robust institutional demand, with the QIB portion subscribed over 204 times, drove the strong debut.
Analysts recommend partial profit booking while holding the remaining shares for long-term growth.
Indo-MIM Shares List At 44% Premium After IPO Subscribed 72 Times
The precision engineering components maker exceeded grey market expectations after its IPO drew overwhelming institutional demand, with the QIB portion subscribed over 204 times
Indo-MIM Shares List At 44% Premium After IPO Subscribed 72 Times
Summary
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Shares of Indo-MIM made a stellar stock market debut on Thursday, listing at a premium of around 44% over their initial public offering (IPO) price after the issue was subscribed more than 72 times.
The stock debuted at ₹700 per share on the NSE, a premium of 44.33% over the issue price of ₹485. On the BSE, it listed at ₹703, reflecting a 44.95% premium.
Investors who received allotment in the IPO earned a listing gain of ₹6,450 per lot. With one lot comprising 30 shares, the investment value rose from ₹14,550 to ₹21,000, based on the NSE listing price.
Strong Institutional Demand Drives Listing
The ₹3,811.21-crore IPO was subscribed 72.34 times during the three-day bidding period. The issue received bids for 398.55 crore shares against 5.51 crore shares on offer.
The Qualified Institutional Buyers (QIB) portion was subscribed 204.34 times, while the Non-Institutional Investor (NII) category was booked 50.63 times. The Retail Individual Investor (RII) segment was subscribed 6.67 times.
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The IPO comprised a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹3,311.21 crore by existing shareholders.
The company plans to utilise ₹400 crore from the fresh issue proceeds to repay debt, while the remaining funds will be used for general corporate purposes.
Ahead of the IPO, Indo-MIM raised ₹1,140.99 crore from anchor investors, including Government Pension Fund Global, BlackRock Global Funds, Goldman Sachs, ICICI Prudential AMC, HDFC Mutual Fund, SBI Mutual Fund, Kotak Mahindra AMC, Aditya Birla Sun Life AMC, Axis Mutual Fund and HSBC Mutual Fund, among others.
Analysts Advise Partial Profit Booking
Shivani Nyati, Head of Wealth at Swastika Investmart, said the strong listing reflected robust demand from institutional investors and Indo-MIM's leadership in the global metal injection moulding (MIM) industry.
She noted that the stock is now trading well above its pre-issue valuation following the sharp listing gains and believes near-term profit booking cannot be ruled out.
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Nyati advised investors to book partial profits at current levels while continuing to hold the remaining position for the long term. She recommended maintaining a stop-loss in the ₹595-600 range to protect listing gains while allowing room for normal market volatility.