Stallion India Fluorochemicals made a stellar debut on stock exchanges on Thursday, with the stock price listing at a premium of 33% over the initial public offering (IPO) price. Post listing, Stallion India share price touched its upper circuit level amid surge in buying.

Shares of Stallion India made its debut at ₹120 on both BSE and NSE, up 33% over its issue price of ₹90. Extending early gains, the counter rose as much as 40% to hit a high of ₹126, whereas its market capitalisation rose to ₹999.42 crore.

The listing of Stallion India was broadly in line with market expectation as the stock was trading at ₹125 in the unlisted market, commanding a grey market premium (GMP) of ₹35, or 39%.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, suggested investors to book part profit with stop loss of ₹105. “The company made a good stock market debut, listing for ₹120 per share, a significant 33% premium over its issue price of ₹90. Those who took part in the IPO may book part profit and hold with stop loss of ₹105,” she says.

Mehta Equities in its post listing note also recommended investors to book profits. “Despite high market volatility, Stallion India received a healthy response from investors across all categories. Considering the market trend and posting listing performances of last few IPOs, we are recommending investors to book profits above our expectations on listing day,” Prashanth Tapse, Senior VP (Research), Mehta Equities.

On valuation per se, at the upper price band, the stock was fairly and reasonably priced based on annualised earnings. “Hence we believe the company has decent room for healthy business growth driven by industry tailwinds and scalability,” adds Tapse.

The ₹199.45 crore IPO of the Stallion India Fluorochemicals, engaged in the business of selling refrigerant and industrial gases and related products, garnered an overwhelming response from investors, with the issue subscribing 188.32 times.  The public issue subscribed 96.81 times in the retail category, 172.93 times in qualified institutional buyers, and 422.35 times in the non institutional investors segment.

The IPO, which opened between January 16-20, was offered at a price band of ₹85-90 per share. The minimum lot size for an application was 165, which means the minimum amount of investment required by retail investors was ₹14,850 for one lot.

Stallion India’s IPO was a combination of fresh issue of 1.79 crore shares worth ₹160.73 crore and offer for sale of 0.43 crore shares aggregating to ₹38.72 crore by existing shareholders. The company intends to use capital raised from fresh equities for funding incremental working capital requirements. A part of the capital will be used for funding capital expenditure requirements for its semi-conductor & specialty gas debulking & blending facility in Maharashtra; and refrigerant debulking & blending plant in Andhra Pradesh.

Incorporated in 2002, Stallion India Fluorochemicals has four Plants in Khalapur, Raigad (Maharashtra), Ghiloth, Alwar (Rajasthan), Manesar, Gurugram (Haryana) and Panvel, Raigad (Maharashtra). Its primary business includes debulking, blending and processing refrigerant and industrial gases, and selling of pre-filled cans and small cylinders/ containers.

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