A mixed bag for new listings: Dixon Tech soars 65%, Bharat Road ends flat

It was a mixed bag for the two new listings on Monday, when the benchmark Nifty hit a new record high. Consumer electronics company Dixon Technologies (India) made a robust debut on the bourses, with its shares soaring nearly 65 per cent over the issue price. Road construction company Bharat Road Network (BRNL), on the other hand, made a tepid debut and its stock closed slightly above the IPO price.
 
Shares of Dixon hit a high of Rs 3,020 on the BSE and closed at Rs 2,892, a gain of 64 per cent over the issue price of Rs 1,766 a share. Dixon’s Rs 600-crore initial public offering (IPO) got an overwhelming response from investors. Overall, the issue was oversubscribed 82.6 times, receiving bids for 280 million shares against the total issue size of 2.38 million shares. The portion set aside for qualified institutional buyers (QIBs) was subscribed 135 times, that for non-institutional investors 345 times, and retail investors 10.2 times.

 
DTIL has a track record of sustained growth in revenue and profitability. Over the past five financial years, it achieved a compound annual growth rate (CAGR) of 33.78 per cent in the revenue from operations (net) and 44.36 per cent in operating profit.
 

“Its robust financial position illustrates not only the growth of its operations over the years, but also the effectiveness of allocation of the capital and strong working capital management across its business,” said a research note by HDFC Securities.
 
Meanwhile, shares of BRNL closed at Rs 208.15 on the BSE, a gain of 1.5 per cent over its issue price of Rs 205. BRNL’s Rs 600-crore IPO was subscribed 1.8 times, with the retail quota getting a maximum subscription of 5.5 times. The QIB and non-institutional segments were subscribed 1.3 and 1.6 times, respectively.