Jindal Supreme shares off to a solid start, list at 31% premium on BSE

Jindal Supreme's IPO was a mix of a fresh issue of ₹100 crore and an offer for sale of ₹25 crore, with a total offer size of ₹125 crore. The IPO price band was set at ₹88-93 per share.

Jindal Supreme IPO listing: Shares of Jindal Supreme were off to a solid start on Wednesday, as they listed at a premium of up to 31 per cent over the initial public offering (IPO) price of ₹93 apiece. The listing met expectations as signalled by the grey market. 

 

On BSE, Jindal Supreme share price listed at ₹121.90, a premium of 31.08 per cent. Meanwhile, on the National Stock Exchange (NSE), the stock witnessed a 29.03 per cent listing pop as it debuted at ₹120 apiece.

 

Jindal Supreme enjoyed a strong grey market premium (GMP). Ahead of the listing, Jindal Supreme shares were trading at ₹122 in the grey market, a premium of ₹29 or 31 per cent.  

Shivani Nyati, head of wealth at Swastika Investmart, said that Jindal Supreme made a strong debut as the company has an established presence in steel pipes and tubes, a diversified product mix and strong RoNW, while its valuation remains at a discount to peers. 

 

 

"Although thin margins, raw-material cost volatility and declining GI-pipe capacity utilisation remain key concerns, the shift towards higher-margin crash barriers, 75 per cent capacity expansion and balance-sheet deleveraging provide positive medium-term triggers," the expert said.

 

Investors can consider holding the stock with a stop-loss around ₹105–110, she added.

Jindal Supreme IPO details

The IPO received a massive demand from investors as it garnered bids for 1,701.98 million shares as against 9.39 million shares on offer, resulting in 181.07 times subscription. The non-institutional investor (NII) portion was subscribed the most at 327.99 times, while the qualified institutional buyer (QIB) segment received 126.41 times bids, and the retail quota was booked 149.34 times. 

 

Jindal Supreme's IPO was a mix of a fresh issue of ₹100 crore and an offer for sale of ₹25 crore, with the total offer size of ₹125 crore. The IPO price band was set at ₹88-93 per share.  

 

It plans to use the fresh proceeds raised for repayment of certain borrowings and general corporate purposes.

 

The company is engaged in the manufacturing and supply of steel pipes, tubes, and other steel products catering to infrastructure and industrial applications for over five decades. It has robust manufacturing capabilities with a total installed capacity of 1,71,000 MTPA. Meanwhile, its well-established distribution network features 53 dealers across Northern India.

 

That said, Jindal Supreme faces geographic concentration risk due to relying on a single manufacturing facility in Haryana. Its heavy reliance on the top 10 suppliers for over 70 per cent of total raw material purchases also remains a concern, said Swastika.

 

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