Indo-MIM shares list at 45% premium over IPO price
What's the story
Indo-MIM, a leading manufacturer of precision engineering components, has made a strong debut on the stock market. The company's shares were listed at ₹700 apiece on the National Stock Exchange (NSE), a 44.33% premium to its initial public offering (IPO) price of ₹485 per share. On the Bombay Stock Exchange (BSE), Indo-MIM shares debuted at ₹703, up 44.95% from their IPO price.
Subscription details
IPO was subscribed 72.37 times
The Indo-MIM IPO was a blockbuster, getting subscribed 72.37 times by the end of bidding. The issue received bids for 3,985,876,230 equity shares against an offer of 55,074,644 shares.
Qualified institutional buyers (QIBs) led the demand with their portion subscribed 204.47 times on the last day of the issue.
Non-institutional investors (NIIs) booked their quota 50.65 times while retail investors' portion was subscribed 6.69 times.
IPO structure
Fresh issue, OFS comprise the offer
The ₹3,810.31 crore public issue comprised a fresh issue of 1.03 crore equity shares worth ₹499.10 crore and an offer for sale (OFS) of 6.83 crore shares aggregating to ₹3,311.21 crore.
The company plans to use ₹400 crore from the net proceeds of the fresh issue toward repayment/prepayment of certain outstanding borrowings, while the balance will be used for general corporate purposes.
Market position
MIM global leader with world's largest installed MIM capacity
Indo-MIM is the global leader in Metal Injection Molding (MIM) with the world's largest installed MIM capacity. The company serves several global original equipment manufacturers (OEMs).
Mahesh Ojha, VP at Kantilal Chagganlal Securities, said, "Investors receiving allotment may consider holding the stock for the long term to benefit from the company's scalable growth opportunities."