Noida-based Dixon Technologies, a contract manufacturer and solutions company engaged in manufacturing products in the areas of consumer durables, mobile and lighting, listed on the bourses today and started the day in trade today at a staggering 54% higher price in comparison to its issue price at Rs. 2725.
The IPO issue with a price band of Rs 1,760-1,766 per share comprised a fresh issue of Rs 60 crore and an OFS of up to 30,53,675 shares by some of the existing shareholders. Managing Director of the company said, "Post listing, 52 per cent of Dixon will be held by promoters and friends, 8 per cent by employees, 5 per cent by Motilal Oswal and 35 per cent will be with the public".
Through anchor book allocation, the company has raised a total of Rs179.79 crore by offloading shares to institutional investors, including Goldman Sachs, HDFC MF and ICICI Prudential AMC among others.
The proceeds shall be used to clear company's debt of Rs. 22 crore, capital expenditure that includes facility expansion, backward integration and IT upgradation.
The huge gains on listing were anticipated on the back of strong oversubscription as well as grey market premium The issue received an overwhelming subscription of 117.83 times which aimed to mop up a total of Rs. 600 crores.
Know about grey market in IPO, here.
In the early trading hours, the stock of Dixon Tech touched highs of Rs. 2899 and voluminous trading is reported.