Shares of Dixon Technologies India Ltd advanced more than 60% after debuting on the stock market on Monday – the first trading day. Dixon Technologies India Ltd Rs 600 IPO which opened on 6 September for subscription was subscribed 117 times on the last day of bidding. The stock of Dixon Technology rose as much as 65.57% to the record high of Rs 2,921 on NSE today over its issue price of Rs 1,766, while it added Rs 959 or 54.3% to open at Rs 2,725. The technology firm is planning to spend the proceeds on capacity expansion and debt repayment. The initial public offer of Dixon IPO had a price band of Rs 1,760-1,766 per share with a face value of Rs 10 each.
“In the primary raise, the money will be spent on setting up LED TV capacity in Tirupati, expansion of our backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes,” MD Atul B Lall said. Dixon plans to repay a debt of Rs 22 crore, invest Rs 7.57 crore in setting up its seventh manufacturing unit for LED television in Tirupati. The company will use Rs 8.85 crore for producing parts of LED lights at its Dehradun plant.
Meanwhile, shares of Bharat Road Network Ltd another company which debuted on the exchanges today gained 6.34% to Rs 218.9 on NSE. The company has priced its shares in a band of Rs 195-205 for the share sale. The proceeds from the public issue of BRNL of 2.93 crore equity shares will be utilised for advancing of subordinate debt in form of interest-free unsecured loan to a subsidiary, STPL, for part-financing of the STPL Project and general corporate purposes.
The broader benchmark index Nifty 50 hit a lifetime high on Monday, surpassed the record high of 2 August, rising as much as 81 points to mark a fresh counter of 10,167.15 points. The benchmark Sensex too fared in the early trade, gaining 236 points to the day’s high of 32,508.06 points. The value buying in the blue-chip shares such as Reliance Industries, L&T, HDFC Bank, Tata Motors, and ITCfuelled markets to jump to new record highs.