Stallion India Fluorochemicals shares were locked in the 5 percent upper circuit in January 23 trade, shortly after listing at over 33 percent premium on the National Stock Exchange (NSE). The stock was up 5 percent to hit the upper price band limit of the day at Rs 126 per share on the NSE.
The analysts had already anticipated a healthy listing of the company's shares in the secondary market post bumper subscription of the issue and the company's niche presence in the fluorochemicals sector.
The shares of refrigerants supplier Stallion India Fluorochemicals Ltd listed at Rs 120 per share on the NSE, a premium of 33.33 percent over its issue price. The company's market valuation post listing of shares stood at Rs 951.90 crore on the NSE.
The public issue began on January 16 to raise Rs 199.45 crore from the capital markets on a price band of Rs 85 - 90 per share. The issue received a whopping 188.38 times subscription in the primary market.
Research analyst Prathamesh Masdekar from Stoxbox had anticipated a premium listing of around 44 percent and advised investors to hold their positions for medium to long-term gains. "Stallion India’s planned expansions and strong fundamentals make it a compelling story for sustained growth," he said.
Stallion India IPO shares likely to list at 40% premium; analysts suggest 'long-term hold'
Proceeds from the issue will be used towards funding working capital requirements, capital expenditure for its proposed facilities in Maharashtra and Andhra Pradesh, and general corporate purposes.
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Stallion India Fluorochemicals is engaged in the sale of refrigerants and industrial gases, along with related products. The company serves a diverse range of industries, including air-conditioning and refrigeration, firefighting, semiconductor manufacturing, automobile manufacturing, pharmaceuticals and medicals, glass bottle manufacturing, aerosols, and spray foam applications.
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