Investors made considerable returns on Dixon Technologies on Monday, the listing day, as the stock closed with a whopping 63.72 percentage gains on strong need.
The solid debut was warranted as it saw a massive over-subscription and grey market premium. Superior fundamentals also motivated investors to buy the stockexchange.
Dixon closed with a premium of 63.73 percent at Rs 2,891.55 on the National Stock Exchange, against issue price of Rs 1,766.
The consumer electronics manufacturer raised Rs 600 crore last week by its public issue which had received an overwhelming response from investors, oversubscribing 117.83 times.
Dixon will utilize issue proceeds for setting up a unit for manufacturing LED TVs in its Tirupati facility; enhancement of backward integration capabilities in the lighting goods vertical at Dehradun facility and upgradation of their information technology infrastructure; such as repayment of loans; and for general corporate purposes.
The public issue, which opened during September 6-8, comprised a fresh issue of Rs 60 crore and also an offer for sale of up to 30,53,675 equity stocks (including anchor portion of 10,18,027 equity shares).
It is the home-grown design-focused and solutions company engaged in manufacturing goods in the consumer durables, lighting, and mobile phones markets.