Lumino Industries shares soar 40% from IPO price after strong market debut. Should you buy or wait?
Lumino 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.
Shares of Lumino Industries surged by 40% from their IPO price after a strong market debut. The company's stock opened at Rs 110 per share, representing a 34% premium over the IPO price of Rs 82. Following the initial listing, the shares climbed another 4% to reach a high of Rs 114.48, marking a near 40% increase from the issue price. This substantial jump added over Rs 136 crore to the company's market capitalization, which reached Rs 3,486 crore less than an hour after trading began.
The company's IPO received an overwhelming response, being subscribed more than 124 times, with Qualified Institutional Buyers (QIBs) showing the most interest by reserving their portion 233 times. Non-institutional investors (NIIs) and retail investors had a reservation of 185 times and 40 times, respectively.
Lumino Industries plans to use nearly Rs 337 crore from the IPO proceeds to prepay or repay certain outstanding borrowings. Additionally, around Rs 15 crore will be allocated to capital expenditure, including equipment purchases, civil works, and interior development at an existing manufacturing facility. The remaining proceeds will be utilized for general corporate purposes.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Lumino Industries shares jumps 39.6% on debut, lists at ₹110 on NSE thehindubusinessline.com
