September 18, 2017 / 6:13 AM / 9 months ago

Dixon Technologies soars on market debut after $94 million IPO

REUTERS - Shares of Dixon Technologies (India) Ltd rose as much as 70 percent on their trading debut on Monday as investors bet on the strong outlook for the contract electronics manufacturer that counts some of the leading global names among its clients.

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/Files

The stock was trading at 2,897.45 rupees as of 0531 GMT, 64 percent higher than its IPO issue price of 1,766 rupees. It went as high as 2,999 rupees earlier in the day.

The company’s initial public offering (IPO) to raise 6 billion rupees ($93.7 million) had been subscribed nearly 118 times, making it one of the most-subscribed IPOs this year.

Dixon Technologies’ healthy order book and tie-ups with companies such as Panasonic Corp and Koninklijke Philips N.V should improve revenue and margins going forward, said Jaikishan Parmar, an equity analyst with Mumbai’s Angel Broking.

Road operator Bharat Road Network Ltd, which also listed on Monday after a 6 billion rupee IPO, rose as much as 6.8 percent to 218.9 rupees, compared with the IPO issue price of 205 rupees.

Some investors did not like the “complicated structure” through which Bharat Network operates, said Rajnath Yadav, an analyst at local brokerage Choice Broking. The IPO had been subscribed 1.8 times.

Strong stock markets have fuelled a surge in equity deals in Asia’s third-largest economy, with IPO proceeds so far this year crossing $3 billion. While last year’s $4 billion fund-raising from IPOs is set to be surpassed, some expect proceeds to even top the record $8.5 billion raked in seven years ago.

Capacit’e Infraproject Ltd’s IPO to raise 4 billion rupees, which closed last Friday, was subscribed 183 times.

($1 = 64.0075 Indian rupees)

Reporting By Samantha Kareen Nair, Aby Jose Koilparambil and Krishna V Kurup in Bengaluru; Editing by Devidutta Tripathy and Subhranshu Sahu

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