India's Dixon Technologies soars on market debut after $94 mln IPO

Bharat Road Network

18/09/2017 07:12

Sept 18 (Reuters) - Shares of Dixon Technologies (India) Ltd 
 DIXO.NS  rose as much as 70 percent on their trading debut on 
Monday as investors bet on the strong outlook for the contract 
electronics manufacturer that counts some of the leading global 
names among its clients. 
    The stock was trading at 2,897.45 rupees as of 0531 GMT, 64 
percent higher than its IPO issue price of 1,766 rupees. It went 
as high as 2,999 rupees earlier in the day. 
    The company's initial public offering (IPO) to raise 6 
billion rupees ($93.7 million) had been subscribed nearly 118 
times, making it one of the most-subscribed IPOs this year. 
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    Dixon Technologies' healthy order book and tie-ups with 
companies such as Panasonic Corp and Koninklijke Philips N.V 
should improve revenue and margins going forward, said Jaikishan 
Parmar, an equity analyst with Mumbai's Angel Broking. 
    Road operator Bharat Road Network Ltd  BHRN.NS , which also 
listed on Monday after a 6 billion rupee IPO, rose as much as 
6.8 percent to 218.9 rupees, compared with the IPO issue price 
of 205 rupees. 
    Some investors did not like the "complicated structure" 
through which Bharat Network operates, said Rajnath Yadav, an 
analyst at local brokerage Choice Broking. The IPO had been 
subscribed 1.8 times.  
    Strong stock markets have fuelled a surge in equity deals in 
Asia's third-largest economy, with IPO proceeds so far this year 
crossing $3 billion. While last year's $4 billion fund-raising 
from IPOs is set to be surpassed, some expect proceeds to even 
top the record $8.5 billion raked in seven years ago. 
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    Capacit'e Infraproject Ltd's IPO to raise 4 billion rupees, 
which closed last Friday, was subscribed 183 times.   
     
($1 = 64.0075 Indian rupees) 
 
 (Reporting By Samantha Kareen Nair, Aby Jose Koilparambil and 
Krishna V Kurup in Bengaluru; Editing by Devidutta Tripathy and 
Subhranshu Sahu) 
 ((samanthakareen.nair@thomsonreuters.com; +91 8067491310, 
Reuters Messaging: 
samanthakareen.nair.thomsonreuters.com@reuters.net)) 
 
Keywords: DIXON TECHNOLOGIES LISTING/