Shares of consumer electronics manufacturer Dixon Technologies on Monday made a spectacular debut on the bourses and ended the day with a sharp gain of nearly 64% against the issue price of Rs 1,766. After listing at Rs 2,725, a huge jump of 54.3% from the issue price on BSE, the stock finally settled at Rs 2,892.80, up 63.80%.
During the day, it soared 71% to Rs 3,020.25. On the National Stock Exchange (NSE), shares of the company jumped 63.73% to end at Rs 2,891.55. The initial public offering (IPO) of Dixon Technologies was subscribed by 117.5 times on 8 September with investors bidding for 27.93 crore shares of the 23.76 lakh shares on offer.
The qualified institutional buyers bid 9.14 crore shares on 8 September which was the third day of the IPO. High Net worth Individuals (HNIs) bid for 17.59 crore shares and retail investors bid for 1.18 crore shares of the 11.88 lakh shares on offer.
The initial public offer of Dixon IPO had a price band of Rs 1,760-1,766 per share with a face value of Rs 10 each. The public issue consists of fresh issue of Rs 60 crore and an offer for sale of up to 30, 53, 675 equity shares.
Dixon Technologies will use issue proceeds for setting up a unit for manufacturing LED TVs at its Tirupati facility; enhancement of backward integration capabilities in the lighting products vertical at Dehradun facility and upgradation of the information technology infrastructure; for repayment of loans; and for general corporate purposes.
Sunil Vachani, executive chairman and promoter of Dixon Technologies, said to an English daily, “We are overwhelmed by the response we received from the investors for our IPO. It is a matter of honour for us at Dixon Technologies to be a part of the popular stock exchanges. This would not have been possible without the trust shown by our investors. We are confident that together we will deliver value for all stakeholders in the times to come.”
By Baishakhi Dutta
