Shares of Dhoot Transmission and Molbio Diagnostics debuted on a strong note on the bourses today
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DHIRAJ SINGH
Shares of Dhoot Transmission and Molbio Diagnostics made strong stock market debuts on Monday, gaining 21.4 per cent to 38 per cent over their respective IPO prices. Dhoot Transmission listed at a 38 per cent premium on the NSE, while Molbio Diagnostics debuted at a 21.4 per cent premium, following strong subscriptions to both IPOs.
Bain Capital-backed Dhoot Transmission shares listed at ₹1,200 on the NSE, a 38 per cent premium over the IPO price of ₹871. On the BSE, the stock listed at ₹1,193.80, a 37 per cent premium. It then rose to trade at ₹1,205 on the NSE.
Dhoot Transmission Ltd is one of India’s leading electrical and electronics (E&E) companies engaged in the design, engineering, manufacturing, and supply of wiring harnesses and electrical distribution systems for automotive and non-automotive applications.
Shivani Nyati, Head of Wealth at Swastika Investmart, said Dhoot Transmission delivered a strong listing. She cited strong revenue growth, its established position in wiring harnesses and increasing exposure to the EV segment as factors supporting the long-term growth outlook. However, she flagged elevated customer concentration and execution risks.
Nyati maintained a positive long-term view and recommended holding the stock with a stop-loss of ₹1,100.
The Maharashtra-based company raised ₹918.3 crore from anchor investors, including BlackRock, Abu Dhabi Investment Authority and SBI Mutual Funds.
The price band for the IPO was fixed at ₹829-871 per share. The issue comprised a fresh issue of equity shares aggregating up to ₹1,400 crore and an offer-for-sale of up to 1.91 crore equity shares by promoters BC Asia Investments XV Ltd, an entity of private equity firm Bain Capital, and Mangalam Capital Private Ltd.
The company plans to use proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings, investment in subsidiaries for debt repayment and setting up new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion will also be used for inorganic acquisitions and other strategic initiatives.
At the upper end of the price band, Dhoot Transmission will command a post-issue market capitalisation of about ₹17,816 crore, while the valuation at the lower end will be around ₹17,025 crore.
Molbio Diagnostics listed at ₹980 on the NSE and BSE, a 21.4 per cent premium over its offer price of ₹807. The stock then rose to ₹1,003.85, trading with over 24 per cent listing gains.
For Molbio Diagnostics, Nyati highlighted the company’s leadership in molecular diagnostics, expansion-led growth strategy and attractive industry prospects. While the listing valuation remains reasonable relative to peers, she advised investors to remain disciplined following the sharp initial gain. Nyati maintained a positive view with a stop-loss of ₹900.
The point-of-care diagnostics company, backed by Temasek and Motilal Oswal Private Equity, raised ₹281.5 crore from anchor investors. The IPO had a price band of ₹768-807 per share.
The Goa-based company’s IPO comprised a fresh issue of shares worth up to ₹200 crore and an offer-for-sale of up to 91.66 lakh equity shares by existing shareholders.
Molbio Diagnostics will utilise ₹106 crore from the fresh issue proceeds towards capital expenditure for setting up infrastructure for an R&D facility, Centre of Excellence and connected office space. Another ₹72 crore will be deployed towards the purchase of plant, machinery and other equipment for its Goa Unit I, Goa Unit II and Visakhapatnam unit. The remaining funds will be used for general corporate purposes.
Source: Read the original article on www.thehindubusinessline.com