Dhoot Transmission listed at a 38% premium on the NSE, Molbio Diagnostics at 21.4%. Analysts flagged execution risks but maintained positive long-term views.
Alpha Score of 66 reflects moderate overall profile with strong momentum, weak value, moderate quality, strong sentiment.
Shares of Dhoot Transmission and Molbio Diagnostics opened sharply higher on Monday after strong demand for their initial public offerings. Dhoot Transmission listed at a 38% premium on the NSE, while Molbio Diagnostics debuted at a 21.4% premium.
Bain Capital-backed Dhoot Transmission shares started at ₹1,200 on the NSE, above the IPO price of ₹871. On the BSE the stock listed at ₹1,193.80, a 37% gain. It later rose to ₹1,205 on the NSE.
Shivani Nyati, Head of Wealth at Swastika Investmart, said Dhoot Transmission delivered a strong listing. She pointed to the company's revenue growth and its established position in wiring harnesses as factors supporting the long-term outlook. Nyati flagged elevated customer concentration and execution risks as concerns. She recommended holding the stock with a stop-loss of ₹1,100.
The ₹3,067-crore IPO was subscribed 74.21 times overall. Qualified institutional buyers bid 212.92 times their portion. The non-institutional investor category was booked 51.93 times. Retail investors subscribed 8.12 times.
The Maharashtra-based company raised ₹918.3 crore from anchor investors including BlackRock, the Abu Dhabi Investment Authority and SBI Mutual Funds. The price band was ₹829-871 per share. The issue included a fresh issue of up to ₹1,400 crore and an offer-for-sale of up to 1.91 crore shares by promoters BC Asia Investments XV Ltd and Mangalam Capital Private Ltd.
Proceeds from the fresh issue will go toward repaying or prepaying outstanding borrowings, investing in subsidiaries for debt repayment and setting up new wiring harness plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion will fund inorganic acquisitions and other strategic initiatives.
At the upper end of the price band, Dhoot Transmission commands a post-issue market capitalisation of about ₹17,816 crore. The valuation at the lower end is around ₹17,025 crore.
Molbio Diagnostics listed at ₹980 on both exchanges, a 21.4% premium over its offer price of ₹807. The stock rose to ₹1,003.85, trading with gains of more than 24%.
Nyati said Molbio Diagnostics has a leadership position in molecular diagnostics and an expansion-led growth strategy. She noted that the listing valuation is reasonable relative to peers but advised investors to remain disciplined after the sharp initial gain. She maintained a positive view with a stop-loss of ₹900.
The Temasek-backed IPO was subscribed 70.26 times overall. The QIB portion was booked 186.39 times, the NII category 49.80 times. Retail investors subscribed 12.96 times and employees 13.28 times.
The point-of-care diagnostics company raised ₹281.5 crore from anchor investors including Temasek and Motilal Oswal Private Equity. The price band was ₹768-807 per share. The IPO comprised a fresh issue of up to ₹200 crore and an offer-for-sale of up to 91.66 lakh shares by existing shareholders.
Molbio Diagnostics will use ₹106 crore from the fresh issue for capital expenditure on an R&D facility, a Centre of Excellence and connected office space. Another ₹72 crore will go toward plant, machinery and other equipment for its Goa and Visakhapatnam units. The remaining funds will be used for general corporate purposes.
At the upper end of the price band, Molbio Diagnostics commands a post-issue market valuation of around ₹9,300 crore.
Kotak Mahindra Capital Company, IIFL Capital Services, Jefferies India and Motilal Oswal Investment Advisors were the book-running lead managers to the issue.
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