Stallion India shares hit upper circuit after listing, stock now up 40% over issue price

Shares of Stallion India Fluorochemicals made a strong Dalal Street debut on Thursday and then touched their upper circuit level following the listing. The industrial gas player was listed at Rs 120 on both BSE and NSE, a premium of 33 per cent over its issue price of Rs 90.

However, the stock saw a strong buying action post listing as it was locked in the buyer's circuit of 5 per cent at Rs 126, signaling 40 per cent premium over the issue price. The stock was listed in the 'T' Group which means that intra-day buying and selling is not allowed in the stock and it will trade at 5 per cent for 10 days.

Interestingly, the listing of Stallion India Fluorochemicals slightly below the expectations. Ahead of listing, shares of Stallion India Fluorochemicals were commanding a decent grey market premium (GMP) of Rs 35 apiece, suggesting a listing premium of close to 40 per cent for the investors.

Stallion India Fluorochemicals had a strong market recognition as the company has a track record of strong financial performance, said Shivani Nyati, Head of Wealth at Swastika Investmart. "Those who took part in the IPO may book part profit, while others may hold with stop loss of Rs 105," she said.

The IPO of Stallion India Fluorochemicals ran for bidding between January 16 and January 20. It had offered its shares in the price band of Rs 85-90 per share with a lot size of 165 shares. The company raised a total of Rs 199.45 crore via IPO, which included a fresh share sale of Rs 160.73 crore and offer-for-sale (OFS) of up to 43,02,656 equity shares.

The issue was overall subscribed a solid 188.38 times. The portion for non-institutional investors (NIIs) was overall subscribed a solid a whopping 422.42 per cent bids. The allocation for the qualified institutional bidders (QIBs) was subscribed 172.93 times The portion allocated for retail investors was subscribed 96.90 times.

Incorporated in 2002, Stallion India Fluorochemicals is engaged in the business of selling refrigerant and industrial gases and related products. Brokerage majorly had a positive view on the issue and suggested subscribing for a long term. Sarthi Capital Advisors is the book running lead manager of the Stallion India IPO, while Bigshare Services is the registrar for the issue.