INOX India Lists At Over 43% Premium To IPO Price

Shares of INOX India have been listed at a 43 percent premium, which is far below the expected premium of 75 percent, on Thursday. The stock was listed at Rs. 949.65, while the issue price was Rs. 660.

The INOX India IPO witnessed 61.28 times subscriptions, with qualified institutional buyers (QIBs) purchasing 147.80 times the allotted quota, high-net-worth individuals (HNIs) purchasing 53.20 times, and retail investors subscribing 15.3 times.

Being a significant player in the manufacturing of cryogenic equipment, Inox India raised Rs 437.80 crore through an IPO (initial public offering), which consisted of only an offer for sale by the existing shareholders, with anchor investors putting in Rs 437.80 crore.

Experts attributed the below-par listing to a sudden reversal in the secondary market environment and profit booking sentiments due to COVID headlines. However, they recommend the stock for long-term investments.

“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,” Shivani Nyati, Head of Wealth, Swastika Investmart Ltd., said, according to Moneycontrol.

However, Prashanth Tapse, Sr. VP Research, Mehta Equities Ltd., urged shorter-term investors to book profit and long-term investors to hold the stock.