Lumino Industries shares continued their upward momentum on Friday, September 4, following the company’s strong stock market debut on Thursday, September 3.
The recently listed stock rose 5.2% in intraday trade to touch a high of ₹116.08. At this level, the stock was trading 41.5% above its IPO price of ₹82 per share.
had made its market debut at ₹110 on the BSE, representing a premium of 34.15% over its issue price. During the previous trading session, the stock climbed more than 45% to an intraday high of ₹119 before settling at ₹110.35 per share, up 34.6% from the IPO price.
Lumino Industries continues to offer a positive investment case because of its attractive valuation compared with EPC and cable peers, strong profitability and the highest return on net worth (RoNW) among key peers. However, investors should remain mindful of the company’s significant dependence on government and clients and avoid chasing the stock after its sharp listing gains.
“Our view remains Positive, supported by attractive valuations versus EPC and cable peers, strong profitability with an 11.71% EBITDA margin, and the highest RoNW among key peers. The planned debt reduction from IPO proceeds could also help lower finance costs going forward. However, the high dependence on government and PSU clients, which contribute 53%–86% of revenue, remains a key risk due to tender-driven and potentially lumpy cash flows,” said Shivani Nyati, Head of Wealth at Swastika Investmart.
Nyati advised that for IPO allottees, partial profit booking and holding the remaining shares with a trailing stop-loss of ₹98–100 can be considered.
“Fresh investors should avoid chasing the stock after the sharp listing gain and wait for some consolidation. If the stock sustains above ₹110–112 with strong volumes, it could move towards ₹120–125. Medium-term investors can hold with prudent position sizing,” she suggested.
Lumino Industries IPO details
Lumino Industries, a product-focused integrated engineering, procurement and construction (EPC) company, opened its initial public offering () for subscription on Thursday, August 27. The bidding window closed on Monday, August 31.
The IPO received strong demand during the three-day subscription period, with the non-institutional investor (NII) segment emerging as the most heavily category at 176.42 times. The qualified institutional buyers (QIBs) portion was subscribed 221.43 times, while the retail investor category received bids for 38.50 times the shares on offer.
Overall, the Lumino Industries IPO was subscribed 118.12 times by the third and final day of bidding, according to NSE data.
The IPO comprised a fresh issue of equity shares worth up to ₹500 crore and an offer-for-sale () of up to ₹200 crore by promoters Devendra Goel and Jay Goel.
The issue’s price band was fixed at ₹78– ₹82 per equity share, with a face value of ₹5 per share. Investors could apply for a minimum lot of 182 equity shares and thereafter in multiples of 182 shares.
Lumino Industries intends to use ₹337 crore from the fresh issue proceeds towards repayment of debt. Another ₹15 crore has been earmarked for capital expenditure, including the purchase of equipment and machinery, civil works and interior development at an existing manufacturing facility. The remaining funds will be used for general corporate purposes.
Motilal Oswal Investment Advisors Ltd is the book-running lead manager for the IPO, while Bigshare Services Pvt Ltd has been appointed as the registrar to the issue.
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