INOX India stock market listing: Shares debut with 44% premium over IPO issue price at Rs 949.65 –

INOX India stock market listing: Shares debut with 44% premium over IPO issue price at Rs 949.65

INOX India made a strong debut on the stock exchanges on Thursday, with shares opening at a premium of 43.88 per cent over the IPO issue price.

On the National Stock Exchange (NSE), INOX India’s share price started at Rs 949.65 per share, higher than the issue price of Rs 660. Similarly, on the Bombay Stock Exchange (BSE), the share price was listed at Rs 933.15 apiece.

The IPO of INOX India, with a price band of Rs 627 to Rs 660 per equity share, witnessed strong demand during its subscription period from December 14 to December 18. The IPO raised Rs 437.8 crore from anchor investors on December 15.

Ahead of the listing, the company’s shares were trading at a Grey Market Premium (GMP) of roughly Rs 500 in the unlisted market.

Analysts believe that despite valuations factoring in near-term growth, the strong listing is justified due to the company’s strategic position in the niche market with a global footprint.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said, “Inox India entered the secondary market today at a listing price of Rs. 949, a gain of around 43 per cent over its issue price of Rs. 660. The IPO received a huge subscription of 61.28x. Though we can consider it a decent listing, it is still below expectations, and the reason behind this is poor market sentiment.”

“Inox India is the leading cryogenic equipment supplier in India, benefiting from rising demand in sectors like healthcare, space exploration, and food processing. It boasts a diversified product portfolio and a strong order book. With strong fundamentals and a growing market, the company has the potential for long-term value creation; thus, we recommend holding it with a long-term view. Also, fresh buying at a lower level can be considered,” Nyati added.

The IPO, which was subscribed 61 times overall, saw significant interest from qualified institutional buyers. The retail investor portion was subscribed 14.82 times, while the non-institutional investor segment garnered bids of 52.97 times. The qualified institutional buyer category witnessed an overwhelming subscription of 147.8 times.

It may be noted that INOX India’s IPO consisted entirely of an Offer for Sale (OFS) of 2.21 crore shares. As the issue is solely an OFS, the company will not receive any proceeds, and all funds will go to the selling shareholders.

INOX India is a leading cryogenic tank manufacturer, providing solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions. The company boasts an order book of Rs 1,036 crore, including anticipated revenues from unexecuted portions of existing contracts as of September 2023.

In the six months ending September 2023, INOX India reported a 17 per cent YoY growth in total income to Rs 580 crore, accompanied by a 24 per cent increase in net profit to Rs 103 crore.

Published By:

Koustav Das

Published On:

Dec 21, 2023

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