Indo-MIM IPO: Why do analysts prefer it over Xtranet, Lohia & Cube? Decoded

As investors struggle to decide the best bet, analysts' consensus lies with ₹3,811-crore Indo MIM IPO as they find its global leadership position, robust financials and strong grey market positioning.

IPO market: Primary market investors are spoilt for choice as four initial public offerings (IPOs) are underway on Dalal Street. After the launch of Cube Highways Trust's offer earlier this week, three new mainboard IPOs have joined the fray on Thursday, July 23.

 

Xtranet Technologies, Lohia Corp and Indo MIM are the three public offers that have opened for subscription today, joining Cube Highways Trust IPO that kicked off on Wednesday. 

 

As investors struggle to decide the best bet, analysts' consensus lies with ₹3,811-crore Indo MIM IPO as they find its global leadership position, robust financials and strong positioning in the grey market attractive both for long-term and listing gains. 

 

Dr Ravi Singh, Chief Research Officer from Master Capital Services, said the current IPO lineup gives investors exposure to four distinct themes, including precision engineering manufacturing, technical textiles, enterprise technology services and infrastructure assets.

Why analysts prefer Indo MIM IPO

Indo-MIM is the world's largest Metal Injection Molding (MIM) company by installed capacity, with a diversified presence across automotive, aerospace, defense, medical, and consumer sectors, providing a strong competitive moat. READ MORE

 

Commenting on his preferred bet, Vinit Bolinjkar, head of research at Ventura, said Indo-MIM is the best among the four to consider, because it combines a niche global manufacturing franchise, diversified end-markets, and proceeds that support debt reduction, even though the valuation is not cheap.

 

Indo-MIM trades at a premium P/E of ~45x FY26 earnings, but global leadership and technological edge justify the valuation, believe analysts.

 

The company's offer is a fresh issue of ₹499 crore and an offer for sale (OFS) of ₹3,311 crore, priced at ₹461 to ₹485 per share. The majority of the proceeds from the fresh share sale are earmarked for repayment of debt. 

 

This would directly boost bottom-line earnings, giving it the strongest business moat and momentum of the equity offerings, said Santosh Meena, head of research at Swastika Investmart. For growth and listing gain potential, he said that Indo-MIM is the top bet. 

 

The grey market trend also supports Indo-MIM IPO. The GMP for Indo-MIM was ₹185 per share, implying a 38 per cent premium over the upper end of its IPO price band. Xtranet Technologies was the second-best performer with a 10.24 per cent GMP, followed by Lohia Corp at 8.47 per cent. READ MORE

 

Singh of Master Capital Services opined that among four mainboard IPOs, Indo-MIM has seen relatively stronger market interest, supported by its global leadership position and the highest grey market premium. However, he cautioned that grey market premiums are volatile and not indicative of listing performance.

Analysts on other IPOs

According to analysts, investors' choice should ultimately depend on whether they are seeking capital appreciation or steady passive income. 

 

Among other IPOs underway currently, analysts said that for income-focused investors prioritising stability over rapid growth, Cube Highways Trust (InvIT) is the most compelling pick. The ₹5,000-crore InvIT will close for bidding on Friday. 

 

Meena finds Lohia suitable for post-listing observation rather than immediate aggressive bidding given the ₹1,101-crore IPO is entirely an OFS. The offer price band is fixed at ₹404 to ₹425 per share. READ MORE

 

As for Xtranet Technologies, he finds it a niche small-cap IT play that carries higher competitive risks. The company is looking to raise just ₹167 crore via the share sale. READ MORE

 

From an investors' standpoint, Bolinjkar said that Xtranet Technologies looks more like a listing-gain story than a strong long-term buy, while Lohia Corp appears solid but is comparatively more valuation-sensitive and partly an OFS-led issue.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.