IC Electricals Ltd, a company manufacturing important electronic equipment for Indian Railways, has made a big entry in the stock market today. This company has given such strong returns to its investors on the very first day, which even big market experts had not expected. This share with an issue price of Rs 99 was directly listed at Rs 166. This simply means that investors have received a handsome premium of 67 percent on the day of listing. For the small retail investors who got two lots of this IPO, it was as if they had won a lottery. He made a net profit of around Rs 1.60 lakh on the very first day.
Beat even gray market estimates
Before listing of any IPO in the stock market, everyone keeps an eye on its Gray Market Premium (GMP). Today on the morning of 10th July, when the market was about to open, the GMP of IC Electricals was hovering around only Rs 47. According to this, market experts were assuming that the share would be listed around Rs 146 and investors would get a profit of about 47 percent. But when the bell actually rang and trading started in the stock market, this stock defied all estimates. The share opened directly at Rs 166. In this way, investors got a bumper listing gain of 67 percent, much more than expected.
Chhaparfaad subscription had already given indications
The foundation of this bumper earning had actually been laid during the subscription of the IPO itself. There was a race among investors to buy this share. If we look at the figures, this IPO was subscribed a total of 420.09 times. The greatest enthusiasm was seen among non-institutional investors (NIIs), who placed bids 764.38 times more than their quota. In this also, the subscription of large NII category which invested more than Rs 10 lakh was 936.70 times. At the same time, the common man i.e. retail investors also did not lag behind and subscribed it 372.51 times. The quota of institutional buyers (QIB) was also filled 241.75 times. Such huge demand had written the script of this spectacular listing.
What does the company do?
The performance of any company’s stock depends on its functioning. It is important for the common investor to know what IC Electricals does, due to which it got such a good response. Established in the year 2005, this company mainly provides its technical services to Indian Railways. This company produces many important equipment that make train travel safe and easy. These include complex and essential electronic products like voltage regulator, battery charger, emergency light, inverter, microprocessor based control system and vigilance control device. Seeing the continuous modernization of the Railways and the quality of the company’s products, investors have expressed so much confidence in it, the sweet fruit of which they have got today in the form of huge profits.
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