stock debuted at a strong premium on Thursday following a massive response for its (IPO).
The stock began trading at a 34 per cent premium at ₹110 on the. On the , it started trading at 33 per cent premium at ₹109. It then zoomed over 39.6 per cent to cross the ₹114 mark on the exchanges.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, emphasised that their view remains positive, supported by attractive valuations versus EPC and cable peers, strong profitability with an 11.71 per cent EBITDA margin, and the highest RoNW among key peers. The planned debt reduction from IPO proceeds could also help lower finance costs going forward.
“High dependence on government and PSU clients, which contribute 53–86 per cent of revenue, remains a key risk due to tender-driven and potentially lumpy cash flows,” Nyati said.
For IPO allottees, Nyati said, 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.
Congratulations to Lumino Industries Limited on getting listed on NSE today.
Lumino Industries Ltd. is an integrated engineering, procurement and construction (EPC) company in India, with a focus on manufacturing and supplying conductors, power cables, electrical wires and…— NSE India (@NSEIndia)
The IPO fetched an overall subscription ofe, mainly from Qualified Institutional Buyers (QIBs).
The category for QIBs was subscribed 221.43 times, while the non-institutional investors’ segment garnered 176.42 times subscription. The retail portion was subscribed 38.50 times.
The company raised ₹207 crore from anchor investors ahead of the IPO. It had a price band of ₹78-82 per equity share for its IPO.
The IPO comprised a fresh issue of equity shares worth up to ₹500 crore and an offer-for-sale (OFS) of up to ₹200 crore by promoters Devendra Goel and Jay Goel.
Of the proceeds from the fresh issue, ₹337 crore will be utilised for payment of debt, and ₹15 crore will be used for capital expenditure, including purchase of equipment and machinery, civil works and interior development of an existing manufacturing facility. The remaining funds will be utilised for general corporate purposes.