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.
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. 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.
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.
