Indo-MIM makes a strong debut

Indo-MIM made a strong market debut on the BSE, listing at Rs. 703 against a discovered price of Rs. 485, implying a listing gain of nearly 45%. The stock rose further to Rs. 709.65 in early trade, up Rs. 224.65 or 46.32% over the discovered price, and touched an intraday high of Rs. 725.15, as investors reacted to strong IPO demand and the company’s niche positioning in precision engineering components.

Trigger

• Indo-MIM listed on the BSE at Rs. 703 against a discovered price of Rs. 485.
• The stock touched an intraday high of Rs. 725.15.
• The IPO was subscribed 72.34 times overall.
• QIB subscription stood at 204.34 times.
• HNI subscription stood at 50.63 times.
• Retail subscription stood at 6.67 times.

The company is a 30-year-old Bengaluru-based precision engineering components manufacturer. Indo-MIM uses metal injection moulding technology. The company has the world’s largest installed MIM capacity across 15 plants. Its manufacturing footprint includes 6 plants in India, 6 in the US, 2 in the UK and 1 in Mexico. The company has around 6.8% global market share in revenue terms.

The biggest reason for the strong listing is the IPO demand itself. A 72.34-times overall subscription, led by 204.34-times QIB demand, shows strong institutional appetite. When QIB participation is this high, the market usually reads it as confidence in the company’s business quality, export capability and long-term growth visibility.

However, after a sharp listing gain, near-term volatility is possible. The stock has already moved more than 46% above the discovered price, so some profit booking cannot be ruled out.

In our IPO Analysis, we had concluded - Indo-MIM business fundamentals are strong and pricing is attractive. Hence, we recommend applying in the IPO.