SynopsisLumino Industries shares extended their strong debut gains, rising another 4% after listing at a 34% premium to the IPO price. While analysts see attractive valuations, strong profitability and debt reduction as positives, fresh investors have been advised to wait for consolidation, while IPO allottees can consider partial profit booking and monitor key support levels.ETMarkets.comLumino Industries extends debut gains as analysts flag key levels.Shares of Lumino Industries jumped another 4% on Thursday after making a strong market debut, listing with more than a 34% premium over the IPO price earlier in the morning, with analysts advising fresh investors to wait while IPO allottees should watch out for key levels.The shares of the integrated engineering, procurement and construction (EPC) and manufacturing company opened at Rs 110 apiece on NSE, marking over 34% premium over the IPO price of Rs 82 apiece. Following the strong listing, the stock soared another 4% to hit the day’s high at Rs 114.48 apiece, marking a nearly 40% jump from the issue price. This added more than Rs 136 crore to the company’s market capitalisation less than an hour since market debut, taking it up to Rs 3,486 crore.The company’s maiden public issue comprised a fresh issue worth Rs 500 crore, and an offer for sale (OFS) worth Rs 200 crore by promoters Devendra Goel and Jay Goel, at a price band of Rs 78-82 per share. The strong market debut came after the company’s Rs 700-crore IPO received an overwhelming response from investors, being subscribed more than 124 times between August 27 and August 31. Qualified institutional buyers (QIBs) showed the most interest, booking their reserved portion around 233 times, while that kept for non-institutional investors (NIIs) was subscribed 185 times. Retail investors subscribed to their reserved portion over 40 times.Ahead of the IPO, Lumino Industries raised nearly Rs 207 crore from anchor investors on August 25, with marquee institutional investors including Citigroup Global Markets Mauritius Private Limited, SBI General Insurance Company Limited, Bajaj Life Insurance Limited, Silver Stride India Global Fund and 3PIM India Equity (IFSC) Fund participating in the anchor book. Also read | Lumino Industries raises Rs 207 crore from anchor investorsHow will Lumino Industries use IPO Proceeds?Lumino Industries plans to use nearly Rs 337 crore for the prepayment or repayment of certain outstanding borrowings. It also proposed to spend around Rs 15 crore on capital expenditure, including equipment and machinery purchases, civil works, and interior development at an existing manufacturing facility. The remaining proceeds will be deployed towards general corporate purposes. The company is an integrated engineering, procurement and construction (EPC) and manufacturing company focused on India's power transmission and distribution sector. The company manufactures conductors, power cables, electrical wires and high-temperature low-sag (HTLS) conductors, which are used in power transmission and distribution infrastructure.Should you buy, sell or hold Lumino Industries shares?Attractive valuations versus EPC and cable peers, strong profitability with an 11.71% EBITDA margin, and the highest RoNW among key peers supported Shivani Nyati’s positive view on the stock. The Head of Wealth at Swastika Investmart said 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, the analyst noted. For IPO allottees, she said that partial profit booking and holding the remaining shares with a trailing stop-loss of Rs 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 Rs 110–112 with strong volumes, it could move towards Rs 120–125. Medium-term investors can hold with prudent position sizing,” according to the analyst.Also read | Lumino Industries shares list at 34% premium over IPO price(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) 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