Investors are not treating consumer durable companies and its ancillary industries similarly. This was evident on listing of Dixon Technologies (India) on Monday. The stock zoomed on listing by debuting with a premium of 55 per cent and closing at an even higher rate of 65 per cent.
The stock has opened at ₹2,725, over its issue price of ₹1,766, and touched a high of ₹3,024, before closing at ₹2,891.55 on the NSE.
The share price touched a high of ₹2,899 in early trade, up as much as 64 percent over IPO price. It traded with volumes of 14 lakh shares at 10:05 hours IST.
In a scenario wherein share prices of consumer durable companies are struggling on the bourses as they are just coming out of impact of demonetisation and goods and services tax, Dixon Technologies seems to be expected to do well with the upcoming festive season.
The company is the largest home-grown design-focussed and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India.
The company offers a fully integrated end-to-end product and solution suite to original equipment manufacturers (OEMs) ranging from global sourcing, manufacturing, quality testing and packaging to logistics.
It is also a leading original design manufacturer (ODM) of lighting products, LED TVs and semi-automatic washing machines in India.
The initial public offer of the company was subscribed 117.83 times overall.
Calm beginning Meanwhile, Bharat Road Network stock listed and closed at a premium of just 1.7 per cent on the NSE on Monday at ₹208.45 against the issue price of ₹205.. The company’s IPO had received a response of 1.8 times.
Category wise, the qualified institutional buyers portion was subscribed 1.33 times, the non-institutional investors’ 1.63 times and retail individual investor portion 5.69 times.