INOX India lists at Rs. 950, 44% above issue price
INOX India made a strong entrance on the stock exchanges today, with shares opening at a 44% premium over the issue price. Trading began on the National Stock Exchange (NSE) at Rs. 949.65 per share and on the Bombay Stock Exchange (BSE) at Rs. 933.15 per share. However, the listing's potential was affected by poor market sentiment due to rising COVID-19 cases.
IPO subscription and grey market premium
The INOX India IPO, priced between Rs. 627 and Rs. 660 per equity share, saw high demand, with a subscription rate of 61.28 times. Anchor investors demonstrated confidence by investing Rs. 437.8 crore. Before its listing, the grey market premium (GMP) stood at approximately Rs. 440. Expectations leaned toward a listing premium of over 66% based on the upper band issue price of Rs. 660. However, due to subdued market sentiment, the actual listing fell short of these optimistic projections.
Is it worth holding for the long term?
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., expressed optimism about INOX India's long-term prospects. Nyati said, "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." Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd., also recommended allottees to hold for the long term, considering its strategic position in the niche market.
Company's position in the cryogenic equipment sector
As India's leading cryogenic equipment supplier, INOX India is well-positioned to benefit from increasing demand in sectors such as healthcare, space exploration, and food processing. The company's diversified product portfolio and robust order book contribute to its strong market position.
