What a day for a new stock to get listed! On the back of a great Budget, bulls in charge of Dalal Street and sentiments extremely positive, its no wonder that Indigo Paints made such a fantastic debut.
The stock got listed on the BSE at Rs.2607.50 v/s the IPO price of Rs.1490, a 75% premium.
It was expected to have a great listing as the response to the IPO was very good – was subscribed 117 times. The lion’s share of the IPO was subscribed by institutional investors at 263.05 times, HNIs at 189.57 times and Retail investors was at 15.93 times.
In our New Issue Analysis, we had said, “Bullish outlook on paint sector, coupled with company’s strong margins and future growth make this small cap stock promising. We therefore recommend subscribing to the IPO, both from listing gains as well as long term portfolio holding.”